Pakistan integrates cryptocurrency regulator into anti-money laundering laws

Pakistan has officially brought the Pakistan Virtual Assets Regulatory Authority (PVARA) under the framework of the Anti-Money Laundering Act (AMLA). The National Executive Committee on AML-CFT approved the inclusion of PVARA in Schedule IV of the Act, granting the regulator direct enforcement powers against cryptocurrency firms that fail to comply with anti-money laundering rules.

Under this new mandate, licensed virtual asset platforms must adhere to the same compliance standards as traditional banks. This move follows the passage of the Virtual Assets Act in March 2026, which reversed a 2018 ban on cryptocurrency and established PVARA to license and supervise exchanges.

The regulatory shift aims to bring one of the world’s largest cryptocurrency populations into a formal structure. PVARA will work alongside the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan to oversee the ecosystem, with PVARA focusing on licensing and market surveillance.