In a significant development aligned with commitments to the International Monetary Fund, Pakistan has enacted a comprehensive legal framework for the digital financial sector by passing the Virtual Assets Act 2026.
According to official sources, Parliament approved the legislation, paving the way for the formal establishment of the Pakistan Virtual Assets Regulatory Authority. The new authority will be responsible for licensing and regulating virtual asset service providers across the country.
The law aims to strengthen investor protection, enhance transparency in digital financial transactions, and bring the regulatory environment in line with international standards. It also provides mechanisms to curb money laundering and prevent the financing of terrorism within the virtual assets ecosystem.
Officials noted that the regulatory body was initially set up in July 2025 through a presidential ordinance, which has now been granted full legal status by Parliament. With the passage of the Act, the digital asset sector is expected to gain greater institutional oversight, fostering stability and encouraging responsible technological innovation.
Policy experts believe the structured regulatory framework will help integrate Pakistan’s virtual asset market into the formal economy while ensuring compliance, accountability, and consumer safeguards.
