Regulators say Pakistan’s regulatory regime is being aligned 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 approved the Virtual Assets Act 2026, which formally established the Pakistan Virtual Assets Regulatory Authority (Pvara).
Pvara was initially created in July 2025 through a presidential ordinance, but the legislation now grants it formal legal status. Under the law, measures will also be implemented to prevent money laundering and terrorism financing.
The authority will issue licenses to virtual asset service providers operating in the country and will oversee 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 assets market while encouraging the adoption of emerging technologies.
Regulators say Pakistan’s regulatory regime is being aligned with international standards.
Pvara has been formed to license entities that provide virtual asset services in or from Pakistan; regulate virtual asset markets and service providers and supervise compliance with financial, security, and legal standards
It has been granted broad regulatory powers to ensure financial integrity and transparency; prevent illicit activities, including money laundering and terrorism financing; and ensure alignment with international standards.
