Pakistan Parliament Approves 2026 Virtual Assets Legislation
Pakistan's new legislation establishes formal regulatory framework for cryptocurrency operations, including anti-money laundering measures and sanctions enforcement.
On Wednesday, Pakistan's legislative body approved the Virtual Assets Act, 2026, which establishes the Pakistan Virtual Assets Regulatory Authority (PVARA) as the nation's official regulatory body for digital currencies and related assets.
The newly approved framework grants PVARA, which was founded in July 2025, comprehensive powers to implement licensing protocols and provide regulatory oversight for providers of digital asset services, as stated in the regulator's official announcement.
Under the newly enacted legislation, PVARA has been assigned the responsibility of establishing and implementing anti-money laundering measures as well as ensuring compliance with international sanctions requirements. Chairman of PVARA, Bilal Bin Saqib, stated:
"With no objection certificates (NOCs) already issued and banking rails being developed in coordination with the State Bank of Pakistan, we are now moving toward a comprehensive licensing framework aligned with global AML and financial integrity standards."
Both the Senate and Pakistan's National Assembly have approved the legislation, though it requires the signature of Pakistan President Asif Ali Zardari before it can be officially enacted into law.
In November 2024, Pakistan's government took steps to establish cryptocurrencies as legal tender, marking a complete reversal from the historically negative stance held by regulatory authorities, who had previously declared that cryptocurrency would never receive legal recognition or integration within the country's financial infrastructure.
Pakistan may emerge as a crypto hub in five years
Following this policy shift, Pakistan has revealed plans for a Bitcoin strategic reserve and committed 2,000 megawatts of electrical power specifically for cryptocurrency mining operations and artificial intelligence data centers.
According to Bin Saqib's remarks at the Bitcoin MENA conference in December 2025, digital assets represent the cornerstone of a "new financial rail for the global south," with Pakistan considering blockchain technology as essential infrastructure for future development.
During January, Pakistan entered into a memorandum of understanding with SC Financial Technologies, which operates as an affiliate of World Liberty Financial, the decentralized finance platform established by the sons of US President Donald Trump.
This partnership agreement will investigate potential applications of the USD1 stablecoin for digital payment systems, encompassing both cross-border transactions and remittance services.
Changpeng Zhao, co-founder of Binance, expressed his view that Pakistan has the potential to become a leading global center for digital assets by 2030, provided the nation maintains its current accelerated trajectory of development and regulatory advancement.