Pakistan Passes Virtual Assets Act, Establishes Crypto Regulator

Pakistan launches PVARA regulator after embracing Bitcoin and fostering crypto mining.

  • Pakistan’s parliament passed the Virtual Assets Act, 2026, establishing the Pakistan Virtual Assets Regulatory Authority (PVARA) as the national regulator.
  • The act gives PVARA authority to enforce licensing and oversight, including AML compliance and international sanctions.
  • The government has actively fostered the sector, declaring crypto legal tender in 2024 and announcing a Bitcoin reserve and dedicated power for mining.
  • Pakistan has engaged in international partnerships and ranks highly in global crypto adoption.

On Wednesday, Pakistan’s parliament passed the Virtual Assets Act, 2026, formally cementing the Pakistan Virtual Assets Regulatory Authority (PVARA) as the country’s official digital asset regulator. The framework grants the agency, established in July 2025, the power to enforce licensing and oversee service providers, according to an announcement.

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PVARA is also tasked with setting anti-money laundering rules and ensuring sanctions compliance under the new law. PVARA Chairman Bilal Bin Saqib said, “With no objection certificates (NOCs) already issued… we are now moving toward a comprehensive licensing framework aligned with global AML and financial integrity standards.”

The bill passed both legislative chambers but still requires the President’s signature to become law. This action continues a significant policy reversal from November 2024, when Pakistan moved to regulate cryptocurrencies as legal tender.

Consequently, Pakistan has announced a national Bitcoin strategic reserve and dedicated 2,000 megawatts of electricity for mining and AI data centers. Bin Saqib previously called digital assets a “new financial rail for the global south” and labeled blockchain as critical infrastructure.

Meanwhile, data shows Pakistan ranks near the top of Chainalysis’ 2025 Global Crypto Adoption Index. The country also signed a memorandum of understanding with SC Financial Technologies to explore using the USD1 stablecoin for payments and remittances.

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Binance co-founder Changpeng Zhao said Pakistan could emerge as a global digital asset hub by 2030 if its rapid development continues.

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