Pakistan implements Virtual Assets Act to regulate crypto businesses

Pakistan has implemented the Virtual Assets Act, 2026, establishing a regulatory framework for the digital asset sector. The Act specifically targets Virtual Asset Service Providers (VASPs) and issuers who offer or distribute virtual assets within the country. Notably, the legislation does not regulate individual holders or personal trading, meaning personal crypto ownership remains outside the scope of these specific requirements.

The Pakistan Virtual Assets Regulatory Authority (PVARA) has been established as the primary regulator. While regulations for services and specific activities were notified in August 2026, the PVARA has not yet issued any full VASP licenses as of early September 2026.

In an effort to shape the industry, PVARA Chairman Bilal Bin Saqib has indicated that Pakistan is looking toward the Hong Kong model for developing its digital finance infrastructure. Following a visit to Hong Kong to meet with financial regulators, Saqib briefed Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on potential frameworks for blockchain, tokenization, stablecoins, and digital bonds. The goal is to balance financial innovation with investor protection and risk management.