Pakistan Parliament Passes Virtual Assets Act of 2026

For about eight years, Pakistan restricted banks from serving cryptocurrency businesses, leaving the virtual asset industry without formal access to financial services. The Virtual Assets Act of 2026 establishes a nationwide regulatory framework and gives statutory status to the Pakistan Virtual Assets Regulatory Authority (PVARA), with implications for regulatory compliance, banking access and financial risk management.

Pakistan's parliament formally passed the legislation in 2026, authorizing PVARA to oversee virtual asset service providers (VASPs), issue licenses and enforce applicable requirements. The new regime also allows banks to serve licensed cryptocurrency businesses, ending a ban that had lasted about eight years, while requiring firms to comply with global anti-money laundering (AML) and financial integrity standards.