Regulators say Pakistan’s regulatory regime is aligning with international standards
ISLAMABAD:
Pakistan has fulfilled another key condition set by the IMF by establishing a new legal framework for the country’s digital financial sector.
Parliament recently passed the Virtual Assets Act 2026, which formally established the Pakistan Virtual Assets Regulatory Authority (Pvara).
Pvara was initially created in July 2025 by a presidential ordinance, but legislation now grants it formal legal status. According to the law, measures will also be implemented to prevent money laundering and terrorist financing.
The authority will issue licenses to virtual asset service providers operating in the country and supervise and regulate their activities. According to the regulatory authority, the law aims to ensure investor protection and promote transparency within the digital financial system.
Officials say the new framework will help bring stability to the virtual asset market while encouraging the adoption of emerging technologies.
Regulators say Pakistan’s regulatory regime is aligning with international standards.
Pvara was formed to license entities providing virtual asset services in or from Pakistan; regulate virtual asset markets and service providers and monitor compliance with financial, legal and security regulations
It has been given extensive regulatory powers to ensure financial integrity and transparency; prevent illicit activities, including money laundering and terrorist financing; and ensure alignment with international standards.
