Pakistan parliament passes Virtual Assets Act formalizing crypto regulatory authority

Pakistan's parliament has passed the Virtual Assets Act, 2026, which permanently establishes the Pakistan Virtual Assets Regulatory Authority (PVARA) as a federal body with the authority to license and supervise crypto service providers.

The legislation introduces strict penalties for non-compliance, including fines up to PKR 50 million ($179,000) and up to five years imprisonment for unlicensed operations. It also allows PVARA to create special "virtual asset zones" to attract blockchain companies.

PVARA, initially formed by a presidential ordinance in July 2025, now has statutory powers to enforce compliance, acquire property, and manage licensing for exchanges, custodians, and token issuers. The authority aims to align Pakistan's regulatory approach with international standards concerning money laundering and terrorist financing. To obtain a license, firms must be recognized by major jurisdictions like the U.S. or EU and meet Sharia law compliance requirements.

(Source：The Block)