Pakistan enacts Virtual Assets Act, regulates crypto

Pakistan enacts the Virtual Assets Act 2026, creating PVARA as the crypto regulator. Licensing is mandatory for exchanges, with strict penalties for violations, formalizing the $300 billion crypto market.

Pakistan has enacted the Virtual Assets Act 2026, establishing a comprehensive legal framework for cryptocurrencies and digital assets. The law creates the Pakistan Virtual Assets Regulatory Authority (PVARA) as the national regulator, granting it full authority to license, regulate, and supervise exchanges, custodians, brokers, and token issuers. All virtual asset service providers must obtain a PVARA license to operate legally. Unlicensed activity is punishable by up to five years in prison or fines up to Rs. 50 million (about $179,000). The legislation also introduces measures to prevent money laundering, terrorism financing, market manipulation, and insider trading, aligning Pakistan with international standards. Major exchanges like Binance and HTX have begun seeking licenses under the new regime. This law marks a shift from Pakistan’s previous crypto ban to full regulation, formalizing its $300 billion crypto market and providing oversight for an estimated 30–40 million users.