Pakistan has officially passed the Virtual Assets Act, 2026, establishing a comprehensive legal framework to regulate the country’s rapidly expanding digital asset sector.

The new law creates the Pakistan Virtual Assets Regulatory Authority (PVARA), a dedicated body responsible for licensing, regulating, and supervising Virtual Asset Service Providers operating within the country. The framework aims to improve transparency, strengthen investor protection, and maintain stability across Pakistan’s emerging crypto and digital finance ecosystem.

PVARA was initially formed through a presidential ordinance in July 2025 before being formally approved by parliament under the new legislation. Authorities say the regulatory structure will help support responsible innovation in financial technologies while bringing oversight to the fast-growing virtual asset market.

The legislation also grants the regulator authority to combat money laundering, terrorist financing, and other illicit financial activities linked to digital assets, aligning Pakistan’s crypto oversight with evolving international regulatory standards.