Pakistan has introduced a new legal framework for its digital financial sector with the Pakistan Virtual Assets Act 2026, meeting another key condition linked to IMF-backed reforms.
Parliament has approved the Virtual Assets Act 2026, which formally establishes the Pakistan Virtual Assets Regulatory Authority (Pvara). Pvara was first created in July 2025 through a presidential ordinance, but the new law grants it full legal status.
Officials say the framework is designed to improve oversight, strengthen market stability, and support the safe adoption of emerging financial technologies.
What The Pakistan Virtual Assets Act 2026 Does
Under the law, Pvara will license virtual asset service providers operating in or from Pakistan and regulate their activities.
Regulators say the act also introduces measures to prevent money laundering and terrorism financing. The authority has been granted broad powers to supervise compliance with financial, security, and legal standards.
Pvara says the framework is intended to improve investor protection and promote transparency across the digital financial system.
Pvara will oversee virtual asset markets and the businesses providing related services. This includes issuing licences and supervising ongoing compliance.
Officials say the goal is to bring clarity for legitimate operators while reducing the risk of illicit activity. The authority is also expected to help build confidence in the virtual assets market by setting enforceable rules.
Regulators state that Pakistan’s virtual assets regime is being aligned with international standards.
By creating a dedicated regulator and formalising licensing and compliance requirements, the act aims to strengthen financial integrity and improve transparency in the sector.
