Pakistan's parliament passes the Virtual Assets Act of 2026

The bill legally formalizes oversight over Pakistan's crypto industry, sanctions compliance and anti-money laundering regulations.

Pakistan’s parliament passed the Virtual Assets Act, 2026 on Wednesday, cementing the Pakistan Virtual Assets Regulatory Authority (PVARA), a government agency, as the country’s digital asset regulator.The framework gives PVARA, established in July 2025, the authority to enforce licensing requirements and oversight over digital asset service providers, according to an announcement from the regulator.

PVARA is also tasked with setting and enforcing anti-money laundering provisions and international sanctions compliance under the new legislation. PVARA Chairman Bilal Bin Saqib said:

The bill passed in both the Senate and Pakistan’s National Assembly, but must still be signed by Pakistan President Asif Ali Zardari to become law.

The government of Pakistan moved to regulate cryptocurrencies as legal tender in November 2024, reversing long-standing pushback from regulators, who said crypto would never be legalized or integrated into the financial system.

Related: SEC proposes ‘token taxonomy’ for interpreting crypto under securities laws

Since that time, Pakistan has announced a Bitcoin strategic reserve and dedicated 2,000 megawatts of electricity for mining and AI data centers.

Digital assets are the foundation of a “new financial rail for the global south,” and Pakistan views blockchain technology as critical infrastructure, Bin Saqib said at the Bitcoin MENA conference in December 2025.

In January, Pakistan signed a memorandum of understanding with SC Financial Technologies, an affiliate of World Liberty Financial, the decentralized finance platform founded by US President Donald Trump's sons.

The collaboration will explore the use of the USD1 stablecoin for digital payments, including cross-border transactions and remittances.

Binance co-founder Changpeng Zhao said Pakistan could emerge as a global hub for digital assets by 2030 if the country continues its rapid pace of development and regulatory progress.

Magazine: Pakistan will deploy Bitcoin reserve in DeFi for yield, says Bilal Bin Saqib

Source: CoinTelegraph