Pakistan Virtual Assets Act 2026 Passed

Pakistan parliament building with sealed law document and server rack protected by shield with checkmark icon.

Pakistan Passes Virtual Assets Act 2026 – New Law Formalizes Crypto Oversight and Licensing Framework

Key Takeaways

Pakistan’s parliament has passed the Virtual Assets Act, 2026, establishing a formal legal framework for digital asset regulation.
The law cements the Pakistan Virtual Assets Regulatory Authority (PVARA) as the country’s digital asset regulator.
PVARA is authorized to enforce licensing requirements, anti money laundering provisions, and international sanctions compliance.
The bill has passed both houses of parliament and now awaits the president’s signature to become law.
Pakistan previously announced a Bitcoin strategic reserve and allocated 2,000 megawatts of electricity for mining and AI data centers.

Parliament Approves Virtual Assets Act 2026

Pakistan’s parliament has passed the Virtual Assets Act, 2026, creating a formal legal framework for the country’s digital asset sector. The bill was approved by both the Senate and the National Assembly and now requires the signature of President Asif Ali Zardari to enter into force.

The legislation legally formalizes oversight of Pakistan’s crypto industry and confirms the Pakistan Virtual Assets Regulatory Authority, or PVARA, as the central regulatory body for digital assets. PVARA had already been established in July 2025. With the new act, its role and powers are now anchored in law.

For crypto users and companies operating in or evaluating the Pakistani market, the passage of the act signals a transition from policy announcements to a structured regulatory regime backed by legislation.

PVARA Granted Licensing and Enforcement Powers

Under the new framework, PVARA is authorized to enforce licensing requirements and exercise oversight over digital asset service providers. This includes the power to regulate entities operating within Pakistan’s crypto ecosystem.

The authority is also tasked with setting and enforcing anti money laundering rules and ensuring compliance with international sanctions obligations. According to PVARA Chairman Bilal Bin Saqib, the regulator has already issued no objection certificates and is developing banking rails in coordination with the State Bank of Pakistan.

Bin Saqib stated that the country is moving toward a comprehensive licensing framework aligned with global anti money laundering and financial integrity standards. This indicates that regulatory supervision will extend beyond registration to ongoing compliance obligations.

For exchanges, custodians, and other service providers, licensing and compliance requirements are expected to become central operational conditions once the law takes effect.

Shift From Previous Resistance to Formal Integration

The passage of the Virtual Assets Act follows a broader policy shift that began in November 2024. At that time, the government moved to regulate cryptocurrencies as legal tender, reversing earlier resistance from regulators who had stated that crypto would not be legalized or integrated into the financial system.

Since that reversal, Pakistan has taken additional steps that signal institutional engagement with digital assets. These include the announcement of a Bitcoin strategic reserve and the allocation of 2,000 megawatts of electricity for Bitcoin mining and AI data centers.

At the Bitcoin MENA conference in December 2025, Bin Saqib described digital assets as a new financial rail for the global south and referred to blockchain technology as critical infrastructure. These remarks align with the government’s decision to formalize oversight through legislation.

Pakistan also ranks near the top of the 2025 Global Crypto Adoption Index published by Chainalysis, reflecting high levels of crypto usage relative to other countries.

International Cooperation and Stablecoin Exploration

In January, Pakistan signed a memorandum of understanding with SC Financial Technologies, an affiliate of World Liberty Financial. The decentralized finance platform was founded by the sons of US President Donald Trump.

The collaboration aims to explore the use of the USD1 stablecoin for digital payments, including cross border transactions and remittances. While the memorandum does not in itself create binding regulation, it reflects Pakistan’s interest in integrating stablecoin based payment solutions into its financial ecosystem.

Such initiatives are taking place alongside the development of domestic regulatory structures under PVARA. For users and service providers, this combination of legislative action and international cooperation indicates that digital assets are being addressed at both policy and operational levels.

Outlook for Pakistan’s Position in the Digital Asset Sector

Changpeng Zhao, co founder of Binance, has stated that Pakistan could emerge as a global hub for digital assets by 2030 if it continues its current pace of development and regulatory progress. While this statement does not constitute official policy, it reflects external attention to Pakistan’s regulatory developments.

With the Virtual Assets Act now passed by parliament, the immediate next step is presidential approval. Once signed, the law will provide the formal legal basis for licensing, compliance monitoring, and enforcement actions by PVARA.

For international crypto businesses, payment providers, and platforms assessing market entry, the existence of a defined regulator with statutory authority reduces uncertainty around oversight structures. For users, the introduction of licensing and anti money laundering standards may affect how platforms operate, particularly in relation to onboarding, verification, and transaction monitoring.

Our Assessment

The passage of the Virtual Assets Act, 2026 establishes a formal legal framework for digital asset regulation in Pakistan and confirms PVARA as the central supervisory authority. The law introduces licensing requirements and mandates anti money laundering and sanctions compliance for digital asset service providers. Combined with earlier steps such as recognizing cryptocurrencies as legal tender, announcing a Bitcoin strategic reserve, allocating energy for mining, and exploring stablecoin based payments, the act marks a structured move toward regulated integration of digital assets into Pakistan’s financial system.