Pakistan Legalises Virtual Assets Under New Regulatory Framework
The State Bank of Pakistan (SBP) has announced the immediate enactment of the Virtual Assets Act 2026, officially legalising and encouraging the use of virtual assets in the country. This landmark policy change establishes the Pakistan Virtual Asset Regulatory Authority (PVARA) as the statutory body responsible for licensing, regulating, and supervising virtual asset activities. SBP-regulated entities, including banks, are now permitted to open specific client money accounts for licensed Virtual Asset Service Providers (VASPs), subject to strict compliance with anti-money laundering and counter-terrorism financing regulations. The framework mandates rigorous customer due diligence, separate transactional accounts to prevent fund commingling, and ongoing monitoring of suspicious activities. While banks can facilitate transactions for licensed VASPs, they are prohibited from investing in or holding virtual assets using their own funds or customer deposits. This move aims to integrate virtual assets into the formal financial sector while ensuring robust regulatory oversight and financial security.
Wire timeline
Pakistan Legalises Virtual Assets Under New Regulatory Framework
The State Bank of Pakistan (SBP) has announced the immediate enactment of the Virtual Assets Act 2026, officially legalising and encouraging the use of virtual assets in the country. This landmark policy change establishes the Pakistan Virtual Asset Regulatory Authority (PVARA) as the statutory body responsible for licensing, regulating, and supervising virtual asset activities. SBP-regulated entities, including banks, are now permitted to open specific client money accounts for licensed Virtual Asset Service Providers (VASPs), subject to strict compliance with anti-money laundering and counter-terrorism financing regulations. The framework mandates rigorous customer due diligence, separate transactional accounts to prevent fund commingling, and ongoing monitoring of suspicious activities. While banks can facilitate transactions for licensed VASPs, they are prohibited from investing in or holding virtual assets using their own funds or customer deposits. This move aims to integrate virtual assets into the formal financial sector while ensuring robust regulatory oversight and financial security.
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