Pakistan Establishes Regulatory Framework for $300 Billion Crypto Market

Pakistan's move to formalize its cryptocurrency market has significant implications for the country's economy and digital finance landscape.

The Virtual Assets Act 2026 establishes the Pakistan Virtual Assets Regulatory Authority (PVARA) as the primary regulator, tasked with enforcing licensing requirements and overseeing digital asset service providers.

PVARA is mandated to ensure compliance with international Financial Action Task Force (FATF) standards, including anti-money laundering provisions and sanctions screening.

The new law aims to strike a balance between preventing criminal misuse and fostering innovation in the digital finance sector.