Pakistan Parliament Approves Virtual Assets Act for Crypto Oversight

Highlights:

• Pakistan enacts a permanent legal framework to regulate cryptocurrencies and digital assets.
• The law requires all crypto exchanges and wallet providers to secure a formal license before operating in the country.
• Violators face strict penalties, including PKR 50 million fines and up to five years in prison.

Pakistan has formally made crypto regulation part of its legal system. On March 6, Parliament passed the Virtual Assets Act 2026, and the president signed it the same day. With this step, the country now has a full legal framework for cryptocurrencies and other digital assets. The law also gives full statutory authority to the Pakistan Virtual Assets Regulatory Authority. As a result, the regulator will now operate with stronger legal backing and broader powers. 

Pakistan Brings Virtual Asset Firms Under New Crypto Law

Before this, the sector was being managed under a temporary presidential ordinance issued in July last year. That arrangement has now been replaced by a permanent law approved by Parliament. Under the Act, all virtual asset service providers must secure a formal license before operating in Pakistan. This includes crypto exchanges, custodians, wallet providers, and platforms involved in token issuance.

The Virtual Assets Act, 2026 has been passed by Parliament, marking a major step toward establishing a comprehensive regulatory framework for Pakistan’s rapidly growing digital financial sector.

The law establishes the Pakistan Virtual Assets Regulatory Authority (PVARA), which…

— Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) March 6, 2026

 

Pakistan Adds Strict AML Rules and Penalties for Crypto Violations

The Act also puts a strong focus on financial crime prevention. It gives PVARA the authority to enforce anti-money laundering and counter-terrorism financing rules across the digital asset sector. In doing so, Pakistan is moving its crypto oversight closer to international standards, including those set by the Financial Action Task Force.

The law also sets tough penalties for violations. Anyone running a virtual asset business without a proper license, or issuing a token without approval, could face a fine of up to PKR 50 million, around $179,000, and up to five years in prison. The law also sets a separate punishment for promoting or launching an unauthorized virtual asset offering, with penalties of up to PKR 25 million and a prison term of as much as three years.

Pakistan Moves to Support Crypto Growth With Clearer Regulation

The Act goes beyond enforcement and also lays the groundwork for industry growth. It allows the government to set up special virtual asset zones to attract blockchain and fintech firms. The locations have not been announced yet. Even so, the provision shows that Pakistan wants to support digital innovation and build a more competitive position in the sector.

The law also outlines a broader governance structure for PVARA. The authority will include representatives from major financial institutions, including the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan. Independent industry experts will also be part of the setup.

Digital finance supporters in Pakistan have welcomed this step. Around 30 to 40 million people in the country already trade or invest in crypto. Because of this, clear rules can reduce uncertainty, attract bigger investors, and support healthy growth in the digital asset sector.