Pakistan crypto regulation has entered a formal phase under the Virtual Assets Act 2026, which creates the Pakistan Virtual Asset Regulatory Authority to license and supervise virtual assets.
The law covers virtual asset service providers and gives PVARA powers to classify assets by function, use and economic impact.
The framework aims to bring an already active market under domestic supervision after years of trading through offshore exchanges, mobile apps and informal networks.
It also requires secure sharing of supervisory and enforcement information among relevant bodies.
The law bars unlicensed advertising or marketing of virtual assets. It also requires prescribed risk disclosures in marketing material.
Stablecoins face stricter conditions under the Act. Fiat-referenced tokens must be fully backed by high-quality liquid assets held in segregated reserves.
Read: Pakistan Establishes PMYP China Secretariat in Beijing
The Act requires such tokens to be redeemable at par without undue delay, with audited disclosures and anti-money-laundering compliance.
Mining is excluded from pure licensing requirements, but operations involving customer assets remain subject to regulation.
Licensees must keep customer assets in fully segregated accounts. They cannot pledge customer assets without explicit, informed and revocable written consent from the customer.
Tax treatment will depend on implementation, with the Federal Board of Revenue expected to play a central role.
