Pakistan approves landmark crypto law creating PVARA regulator, legalizing digital asset trading, licensing exchanges, strengthening AML rules, and launching new blockchain initiatives.
Pakistan has taken a historic step toward regulating digital assets and cryptocurrency markets. The country’s parliament has approved the Virtual Assets Act establishing the national regulatory system for crypto businesses. As a result, authorities will be in charge of supervising exchanges, digital asset companies, and other service providers under a formal legal framework.
Pakistan Creates Dedicated Authority to Regulate Crypto Industry
The new legislation creates the Pakistan Virtual Assets Regulatory Authority, which is to act as the official watchdog for digital assets in the country. The regulator would license and monitor the virtual asset service providers throughout Pakistan. These include cryptocurrency exchanges, custodians, trading platforms, and blockchain-based financial companies.
⚡️JUST IN: PAKISTAN PASSES VIRTUAL ASSETS ACT 2026
Pakistan has passed the Virtual Assets Act 2026, creating the PVARA regulator to license crypto exchanges and custodians for the country’s 40 million crypto users. pic.twitter.com/f1Ov3XhWnc
— Coin Bureau (@coinbureau) March 6, 2026
Earlier the authority had existed by a temporary ordinance approved in July 2025. However, the ordinance required parliamentary approval in order to be valid. Therefore, lawmakers evolved the Virtual Assets Act just before the expiration of the ordinance in early March of 2026.
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The bill passed rapidly through parliament following a request for urgency from the government. The National Assembly voted for the legislation on March 3, 2026. Meanwhile, the Senate had passed the bill on February 27.
Finance Minister Muhammad Aurangzeb introduced the bill in parliament and asked for suspension of procedural rules in order to accelerate the approval. According to the preamble of the bill, there was a need for a dedicated authority in India in order to regulate digital assets and offer investor protection.
According to the text reviewed by Dawn, the new framework is meant to spur transparency and market integrity. It also brings in robust protections to illegal activities related to digital currencies.
Furthermore, the law imposes strict adherence to international standards of anti-money laundering and counter-terrorism financing. These standards are based on global frameworks, which are recommended by the Financial Action Task Force.
New Law Legalizes Crypto Trading and Introduces Strict Licensing
The Virtual Assets Act is a significant shift in the crypto policy of Pakistan. In 2018, the State Bank of Pakistan had put a restriction on the deal of banks with cryptocurrency businesses.
However, the new law does make digital assets officially a legal form of investment. Citizens may now legally purchase, sell and hold cryptocurrencies such as Bitcoin and Ether.
Nevertheless, the law says that cryptocurrencies are not legal tender in Pakistan. Therefore, they cannot be used for the everyday payments of the national currency.
The legislation also introduces stringent licensing requirements for all companies that offer crypto services. Every exchange or trading platform has to obtain permission from PVARA to operate in the country.
Authorities have also included harsh penalties for unlicensed operations. Companies which are operating without a license, could be imprisoned up to 5 years or a fine of Rs50 million.
Meanwhile, a number of cryptocurrency platforms worldwide have already initiated the process of entering the regulated market. Exchanges like Binance and HTX have been given the No Objection Certificate to initiate the local registration and compliance process.
Another important feature of the law is the creation of a Shariah Advisory Committee. This committee will review digital financial products to ensure they follow Islamic finance principles.
Government Plans Bitcoin Reserve, Mining Expansion and Digital Rupee
The government is also looking into wider initiatives in the area of blockchain in conjunction with the regulatory framework. One of the most notable proposals is the establishment of a national strategic reserve of Bitcoins.
Officials have announced plans for a government-managed wallet for Bitcoin that could store digital assets as part of the country’s reserves. However, authorities have so far not revealed the size or timeline of this reserve program.
In addition, Pakistan is preparing to extend crypto mining activities. The government has made a budget of about 2,000 megawatts of unused electricity for regulated mining facilities and artificial intelligence data centers.
Officials believe these projects could attract foreign investment and boost the country’s digital economy. Energy allocation for mining will be subject to rigid regulatory oversight to avoid unauthorized consumption of power.
Meanwhile, the State Bank of Pakistan is also working on a central bank digital currency. The suggested digital rupee is an effort to create a secure digital payment system that is backed by the government.
Unlike cryptocurrencies, the digital rupee would act as a legal tender for day-to-day transactions. Authorities believe this project could help to improve financial inclusion and modernize Pakistan’s payment infrastructure.
Overall, the Virtual Assets Act is a significant policy change for the financial system in Pakistan. The country has been transformed from limiting the activity around cryptocurrencies to establishing a regulated industry of digital assets.