The Pakistan Virtual Assets Regulatory Authority (PVARA) has officially entered the country’s anti-money laundering framework. The National Executive Committee on AML-CFT approved adding PVARA to Schedule IV of the AMLA. The move cements PVARA’s authority over crypto exchanges and other virtual asset service providers in Pakistan.
PVARA now officially joins the list of reporting entities under Schedule IV. Specifically, the listing gives PVARA direct enforcement powers against crypto firms that fail to meet anti-money laundering rules. As a result, licensed virtual asset platforms must now follow the same compliance standards as banks.
PVARA itself is a relatively new regulator with a fast-moving agenda. Pakistan’s parliament only passed the Virtual Assets Act in March 2026. The law reversed the country’s 2018 ban on cryptocurrency. It also gave PVARA powers to license and supervise crypto exchanges across Pakistan. In addition, the Act set up a market surveillance regime for the first time.
PVARA Chairman Bilal bin Saqib has called the Virtual Assets Act the country’s first dedicated crypto law. The body builds on a 2025 Presidential Ordinance that first created the regulatory framework. Furthermore, Saqib has said PVARA already issued No Objection Certificates to several firms.
PVARA works closely with the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan. The three regulators now share crypto oversight across different parts of the ecosystem. Specifically, PVARA handles licensing while the SBP works on banking rails for crypto firms.
Pakistan ranks among the world’s largest cryptocurrency markets by adoption. Millions of citizens already use crypto, but most operated outside any formal structure until this year. As a result, PVARA now shoulders responsibility for one of the largest unregulated crypto populations in the world.
PVARA also runs a regulatory sandbox for crypto firms in Pakistan. Companies can test services under PVARA supervision before applying for full licenses. Furthermore, Pakistan signed an MoU in January with a World Liberty Financial-linked firm. The deal explores a dollar-backed stablecoin for cross-border payments.
The AMLA Schedule IV listing adds enforcement teeth to PVARA’s existing powers. Licensed Pakistani crypto exchanges must now build full AML programs. They must also report suspicious transactions and face Financial Monitoring Unit oversight. In addition, PVARA can now take direct action against firms that fail these obligations.
The NEC also added Section 28 of the Pakistan Maritime Zones Act, 2023 to Schedule I of the AMLA. Federal Finance Minister Senator Muhammad Aurangzeb chaired the 19th NEC meeting at the Finance Division.
