Pakistan Formalizes Crypto Oversight with Landmark Virtual Assets Act

7 March 2026 - 09:26 CET

By Stu Clelland

Pakistan has passed a law that establishes a permanent federal framework for the regulation of digital assets. 

The move transitions the Pakistan Virtual Assets Regulatory Authority (PVARA) from a temporary entity into a statutory body with broad powers to license, monitor and penalize firms operating within the country.

The Virtual Assets Act 2026 introduces stringent requirements for Virtual Asset Service Providers (VASPs) – businesses that facilitate crypto transactions – mandating that all platforms obtain a federal licence to serve Pakistani residents. Under the new law, firms operating without authorization face severe criminal penalties, including prison sentences of up to five years and substantial fines. The legislation also provides a clear mandate for PVARA to coordinate with the State Bank of Pakistan to integrate digital assets into the national financial system.