Pakistan Passes Virtual Assets Act 2026 Targeting Unlicensed Firms
What to Know
- Pakistan passed the Virtual Assets Act 2026, creating a permanent crypto regulator called PVARA.
- Unlicensed crypto operations can face fines up to PKR 50 million and five years in prison.
- The law also plans special virtual asset zones to attract blockchain companies.
Pakistan has taken a major step toward regulating the country’s growing crypto industry. On Friday, the country’s parliament passed the Virtual Assets Act, 2026, a new law that introduces strict rules for companies operating in the digital assets sector and creates a permanent regulatory authority.
The law establishes the Pakistan Virtual Assets Regulatory Authority (PVARA) as the country’s main regulator for digital assets. The authority will now be responsible for licensing, supervising, and monitoring companies that offer crypto-related services in Pakistan. In a statement shared on X, PVARA said the new law marks “a major step toward establishing a comprehensive regulatory framework for Pakistan’s rapidly growing digital financial sector.”
Strict Penalties for Unlicensed Crypto Businesses
Under the Virtual Assets Act, businesses that offer crypto services without a license could face fines of up to PKR 50 million (about $179,000) and up to five years in prison. The law also targets companies or individuals who promote or advertise unauthorized crypto offerings. Such activities could result in fines of up to PKR 25 million ($89,000) and up to three years in prison.
Lawmakers say these penalties are meant to prevent scams and protect people who are entering the digital assets market for the first time. The legislation will come into effect once it is published in the country’s official Gazette.
PVARA Becomes Permanent Regulator
The regulator was first created through a presidential ordinance in July 2025, which served as a temporary measure while the government worked on full legislation. The Virtual Assets Act now replaces that temporary system with a permanent legal framework.
As part of its responsibilities, PVARA will have the authority to issue licenses, suspend operations, or revoke approvals for companies that fail to follow the rules. The regulator will oversee a wide range of crypto-related businesses, including exchanges, digital asset custodians, and companies involved in token issuance. The law also allows the authority to enter contracts, acquire property, and enforce compliance with the new regulations.
Transparency and Investor Protection
According to officials, the main goal of the new framework is to bring transparency and stability to Pakistan’s crypto market. PVARA said the system is designed to “promote transparency, protect investors, and ensure the integrity and stability of the virtual assets market while enabling responsible innovation in financial technologies.” The authority also noted that the law gives it the power to take action against illegal financial activities connected to digital assets.
“The legislation equips the Authority with powers to address money laundering, terrorist financing, and other illicit activities associated with virtual assets,” PVARA said. The law also introduces the idea of special “virtual asset zones.” These zones are expected to attract blockchain startups and global crypto companies by offering a supportive environment for innovation. However, the government has not yet announced the locations of these zones.
Global Interest
In September 2025, PVARA invited international crypto firms to apply for licenses. The country has an estimated 40 million crypto users, making it one of the largest emerging markets for digital assets. However, the authority set strict requirements for applicants. Companies must already be recognized in major jurisdictions such as the United States, the European Union, or Singapore.
In December 2025, the crypto exchange HTX became one of the first platforms to receive a No Objection Certificate from PVARA, starting the process of applying for a full license. That same month, Binance also received similar preliminary clearance.
Both exchanges are currently allowed to begin regulatory registration and anti-money laundering checks with Pakistan’s Financial Monitoring Unit. However, they are not yet permitted to operate in the country until full licenses are granted. With the Virtual Assets Act now in place, Pakistan is taking a clear step toward building a regulated crypto market while opening the door for global companies to participate under strict oversight.
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