Pakistan Enacts Virtual Assets Act 2026, Establishes PVARA to Regulate Crypto Market

Pakistan has taken a decisive step toward formalizing its cryptocurrency ecosystem with the approval of the Virtual Assets Act 2026. The legislation creates the Pakistan Virtual Assets Regulatory Authority (PVARA), tasked with licensing and overseeing all crypto service providers. The move marks a stark departure from the regulatory ambiguity that previously characterized the country's digital asset landscape.

PVARA's mandate includes enforcing penalties of up to PKR 50 million ($179,000) and five-year prison terms for unlicensed operations. Unauthorized token offerings face separate sanctions—PKR 25 million ($89,000) fines and three-year imprisonment. Existing providers have a six-month grace period to comply or exit the market.

"A year ago, Pakistan's digital asset landscape was defined by uncertainty and grey areas," said PVARA Chairman Bilal Bin Saqib in a public statement. The framework aims to balance innovation with investor protection, explicitly targeting money laundering and terrorist financing risks.