Pakistan Moves From Crypto Ban to Regulation as Parliament Passes Virtual Assets Act 2026

Core Insights - Pakistan has officially embraced crypto regulation by passing the Virtual Assets Act 2026, marking a significant policy shift in the country's financial history [1][6] - The law establishes a regulatory framework for cryptocurrencies and virtual asset service providers (VASPs), legitimizing one of the world's largest informal crypto markets [2][3] Regulatory Framework - The Virtual Assets Act 2026 defines virtual assets broadly, including Bitcoin, Ethereum, stablecoins, NFTs, and tokenized securities, which can be traded or used for payments [3] - The law creates the Pakistan Virtual Assets Regulatory Authority (PVARA) as an autonomous regulator to oversee the crypto ecosystem [4][6] PVARA's Authority and Responsibilities - PVARA is empowered to issue, suspend, or revoke licenses for crypto exchanges, custodians, wallet providers, and token issuers [7] - The authority will set standards for investor protection, risk management, cybersecurity, and operational resilience [7] - PVARA will enforce compliance with global anti-money laundering (AML) and counter-terrorism financing (CFT) standards, coordinating with other financial regulatory bodies [4][7] - The regulator will conduct market surveillance to prevent manipulation and insider trading, while also advising the government on emerging areas like tokenization and blockchain innovation [7]