Pakistan Virtual Asset Regulatory Authority (PVARA) has published its draft Virtual Asset Services Regulations 2026, opening the framework for public consultation and inviting formal industry feedback.
The proposed rules require all crypto businesses operating in Pakistan to obtain licences from PVARA, with existing firms granted a six-month window to achieve full regulatory compliance.
The regulations introduce 10 separate licensing categories covering exchanges, custody providers, brokers, lending platforms, asset managers, token issuers, and other virtual asset services.
Foreign exchanges that actively target Pakistani users may also be required to obtain local authorisation, extending the regulatory reach of PVARA beyond domestic operators.
The draft imposes strict requirements around customer protection, anti-money laundering, KYC compliance, cybersecurity, governance structures, and overall risk management practices.
Firms will additionally be subject to capital and liquidity requirements, while stablecoins must maintain 100 percent reserve backing and customer assets must stay segregated from company funds.
The framework marks the continued move of Pakistan toward formally regulating and integrating virtual assets into the financial system, rather than pursuing an industry-wide ban.
