Pakistan Formalizes Its $300Bn Crypto Market
Pakistan’s parliament has officially passed the Virtual Assets Act 2026, establishing a permanent legal framework for cryptocurrency in the country. President Asif Ali Zardari signed the bill into law after it cleared the Senate on February 27 and the National Assembly on March 3.
The law formally establishes the Pakistan Virtual Assets Regulatory Authority (PVARA), giving it full authority to license, regulate, and supervise all virtual asset service providers operating in the country, including exchanges, custodians, and token issuers.
What Changes for Crypto Users in Pakistan
Pakistan ranks among the top three globally in cryptocurrency adoption, with an estimated 30-40 million users. Until now, all of that activity operated without a legal framework, against a backdrop of restrictions that date back to a 2018 State Bank of Pakistan directive prohibiting financial institutions from dealing with cryptocurrencies.
Under the new law, unlicensed trading carries penalties of up to five years in prison or a Rs. 50 million fine. The legislation also addresses market manipulation and insider trading, aligning Pakistan with international FATF standards.
Bilal bin Saqib, Chairman of PVARA, said the law was built for “the 100 million young Pakistanis who deserve a financial system that works for them.”
Binance and HTX Are Already In Line
PVARA has already issued No Objection Certificates to Binance and HTX, allowing both exchanges to begin AML registration and incorporate local subsidiaries as they work toward full licensing.
The Bigger Picture
The Act is part of a broader national strategy. Pakistan has announced plans for a strategic Bitcoin reserve, allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI data centers, and signed an MoU with an affiliate of Trump-linked World Liberty Financial to explore stablecoin infrastructure for cross-border payments.
The framework also includes a Shariah Advisory Committee, making Pakistan one of the first countries to formally integrate Islamic finance principles into crypto regulation.
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