Pakistan Embraces Cryptocurrencies: The Launch of the Virtual Assets Act 2026

A New Era for Digital Finance in Pakistan

Karachi: The Central Bank of Pakistan has officially sanctioned the use of virtual assets, including cryptocurrencies, through the introduction of the Virtual Assets Act 2026. This significant development marks a transformative shift in the nation’s digital financial environment.

The newly enacted law has led to the establishment of the Pakistan Virtual Asset Regulatory Authority (PVARA), which will serve as the governing body tasked with licensing, regulating, and supervising all activities related to virtual assets within the country.

According to a circular released by the central bank on Tuesday, "Provided that strict adherence to the outlined conditions is maintained, SBP Regulated Entities (REs) are permitted to open bank accounts for entities licensed by PVARA as Virtual Asset Service Providers (VASPs)."

These new guidelines are set to take effect immediately.

This legislation effectively lays down Pakistan's inaugural legal framework for cryptocurrency and digital asset enterprises.

With the PVARA's formal recognition, the use and transaction of digital currencies are now legal in Pakistan, including for overseas citizens and in international trade.

Previously, Pakistan had adopted a stringent approach towards cryptocurrencies and digital assets, with banking services largely unavailable to these sectors.

The new regulations allow licensed cryptocurrency exchanges, wallet providers, digital asset platforms, and related fintech companies to engage with Pakistan's formal banking infrastructure.