PVARA: Pakistan Virtual Assets Act 2026

The Act is designed to move Pakistan’s virtual asset activity from an informal or restricted environment into a statutory licensing and supervisory framework. PVARA’s official pages describe the authority as Pakistan’s independent federal regulator responsible for licensing, supervising and regulating virtual assets and VASPs operating in the country. The regime covers exchange, wallet, custody, token issuance, brokerage and investment-platform activity, with PVARA’s public materials also referencing derivative services and asset-referenced token issuance.

The framework is not framed as legal advice or permission for any person to provide services. PVARA states that all VASPs must obtain a formal license before offering services in Pakistan and that it is currently accepting No Objection Certificate (NOC) applications as the first step toward full licensing. Its FAQ describes an NOC as preliminary approval that allows an applicant to proceed toward AML registration, Pakistani incorporation and a formal VASP license application.

• PVARA supervision: The authority is responsible for licensing, inspections, supervision and enforcement action against VASPs.
• Licensing and NOC pathway: VASP candidates must seek PVARA approval before commencing covered activity, with full VASP licensing still being operationalized.
• AML/CFT controls: PVARA materials require customer due diligence, transaction monitoring, recordkeeping, suspicious activity reporting and sanctions screening aligned with FATF standards.
• Consumer and market protection: Licensed providers are expected to maintain cybersecurity, safeguard customer funds, provide disclosures and support transparent business practices.
• Enforcement: PVARA’s FAQ states that unlicensed VASP activity is a criminal offense that may result in fines up to PKR 50 million, imprisonment and seizure of assets.

A major implementation step followed on April 14, 2026, when the State Bank of Pakistan issued BPRD Circular Letter No. 10 of 2026. Coverage quoting the circular states that the Virtual Assets Act, 2026 had been enacted and that PVARA was the statutory authority for licensing, regulation, supervision and oversight of virtual asset activities in Pakistan. The circular allowed SBP-regulated entities to open accounts for PVARA-licensed VASPs, subject to verification, due diligence and AML/CFT obligations.

The banking framework remains ring-fenced. Banks must independently verify PVARA licenses, maintain separate Pakistani rupee-denominated Client Money Accounts for authorized VASP transactions, prevent commingling of VASP and client funds, and continue monitoring, risk profiling and suspicious transaction reporting. Reporting on the circular also states that banks may not invest in or hold virtual assets using their own funds or customer funds.

PVARA’s April 26, 2026 advisory clarified that virtual asset services involving users in Pakistan, including issuance, transfer, custody, exchange or arrangement of virtual assets, stablecoins and allied blockchain-based solutions, fall within PVARA’s regulatory perimeter. The advisory states that agreements or pilots directly enabling those services require prior PVARA authorization and encourages early engagement through the Regulatory Sandbox, No-Action Relief Letters or NOC process.