Pakistan has passed a new law to regulate cryptocurrency and bring digital asset businesses under a formal legal system. The Virtual Assets Act 2026 creates a national regulator and sets strict penalties for people or companies running crypto services without a license.
Under the law, anyone operating unauthorized crypto platforms could face fines of up to Rs 50 million (about $179,000) and prison sentences of up to five years. Officials say the move aims to protect investors and bring transparency to a fast-growing but largely unregulated sector.
The law establishes the Pakistan Virtual Assets Regulatory Authority (PVARA) as the country’s official body for overseeing digital asset activities.
PVARA will supervise cryptocurrency exchanges, custodians, and companies involved in issuing digital tokens. The authority will also have the power to grant licenses, monitor operations, and take action against companies that fail to follow the rules.
Authorities say these measures are meant to discourage illegal platforms and create a safer environment for crypto users.
PVARA Chairman Bilal Bin Saqib said the authority is working with the State Bank of Pakistan to develop banking infrastructure that will support licensed crypto businesses. According to him, No Objection Certificates (NOCs) have already been issued to some firms as part of the early regulatory process.
