On March 7, 2026, Pakistan’s government enacted a pivotal law to regulate virtual assets, fulfilling a significant condition set by the International Monetary Fund (IMF). The newly approved Virtual Assets Act 2026 establishes the Pakistan Virtual Assets Regulatory Authority (Pvara), which was initially created through a presidential ordinance in July 2025.
The legislation grants Pvara formal legal status, empowering it to issue licenses to virtual asset service providers and oversee their operations. This move aims to prevent money laundering and terrorism financing while ensuring investor protection and promoting transparency within the digital financial system.
Officials assert that the new framework will stabilize the virtual assets market and encourage the adoption of emerging technologies. By aligning Pakistan’s regulatory regime with international standards, the country aims to enhance financial integrity and transparency.
Pvara’s broad regulatory powers are designed to ensure compliance with financial, security, and legal standards, preventing illicit activities and aligning with global norms. This development is expected to foster a more secure and transparent digital financial environment in Pakistan.
Published in SouthAsianDesk, March 8, 2026
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