Pakistan Enacts Virtual Assets Act 2026, Sets Crypto Rules

TLDR

• Pakistan enacted the Virtual Assets Act 2026 to create a permanent legal framework for cryptocurrency.
• President Asif Ali Zardari signed the bill after approval by both houses of Parliament.
• The law establishes the Pakistan Virtual Assets Regulatory Authority to license and supervise service providers.
• Authorities will impose up to five years in prison or a Rs. 50 million fine for unlicensed trading.
• The Act aligns Pakistan’s crypto oversight with international anti-money laundering standards.

Pakistan has enacted the Virtual Assets Act 2026, creating a permanent legal framework for cryptocurrency operations. President Asif Ali Zardari signed the bill after Parliament approved it in late February and early March. The law establishes clear oversight for a market estimated at $300 billion in domestic activity.

Pakistan Establishes PVARA to Regulate Crypto Market

The Senate approved the bill on February 27, and the National Assembly passed it on March 3. President Asif Ali Zardari then signed the measure into law, and authorities enacted it immediately. The law creates the Pakistan Virtual Assets Regulatory Authority to oversee the sector nationwide.

PVARA now holds full authority to license, regulate, and supervise all virtual asset service providers. The framework covers exchanges, custodians, brokers, and token issuers operating within Pakistan. Officials said the authority will enforce compliance standards and supervise market conduct.

Pakistan ranks among the top three countries globally for cryptocurrency adoption. Estimates place the number of users between 30 million and 40 million nationwide. Until this law, participants operated without a dedicated legal structure.

The 2018 State Bank of Pakistan directive restricted banks from handling cryptocurrency transactions. However, individuals continued trading through informal channels and foreign platforms. The new Act replaces that uncertain position with statutory oversight.

Under the Act, authorities will impose penalties for unlicensed trading activities. Offenders may face up to five years in prison or a fine of Rs. 50 million. The law also criminalizes market manipulation and insider trading practices.

Officials stated that the framework aligns Pakistan with Financial Action Task Force standards. Regulators will require strict compliance with anti-money laundering and counterterrorism financing rules. Authorities will conduct monitoring through licensing and reporting obligations.

Binance and HTX Receive NOCs Under Pakistan Framework

PVARA has issued No Objection Certificates to Binance and HTX. The approvals allow both exchanges to begin anti-money laundering registration procedures. Each company must incorporate a local subsidiary before receiving a full operating license.

Bilal bin Saqib, Chairman of PVARA, addressed the rollout of the new framework. He said, “The law was built for the 100 million young Pakistanis who deserve a financial system that works for them.” Authorities stated that licensing reviews will proceed under defined compliance criteria.

The government also announced plans for a strategic Bitcoin reserve. Officials allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI data centers. Energy authorities confirmed that they identified surplus capacity for these allocations.

Pakistan signed a memorandum of understanding with an affiliate of Trump-linked World Liberty Financial. The agreement focuses on exploring stablecoin infrastructure for cross-border payment systems. Officials stated that technical discussions remain ongoing under that arrangement.

The Act establishes a Shariah Advisory Committee within the regulatory structure. The committee will review products and services for compliance with Islamic finance principles. Authorities confirmed that the integration forms part of the approved legal framework.

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