Pakistan Establishes Permanent Cryptocurrency Regulator with Virtual Assets Act

The Pakistan government has passed the Virtual Assets Act 2026, a significant development in the country's cryptocurrency landscape. This legislation transforms PVARA into a permanent digital asset regulatory body, tasked with overseeing platforms, custodial services, and token issuers.

The act establishes a comprehensive licensing framework for virtual assets, including strict penalties for non-compliant operations. Entities engaging in unauthorized activities may face financial penalties of up to PKR 50 million alongside imprisonment terms extending to five years.