State Bank Moves to Regulate Virtual Assets Under New Law
Apr 15, 2026
The State Bank of Pakistan has introduced a major policy shift in the country’s digital finance sector by supporting the implementation of the Virtual Assets Act 2026, creating a formal legal framework for virtual assets and related services.
The new framework establishes the Pakistan Virtual Asset Regulatory Authority (PVARA), which will be responsible for licensing, regulating, and supervising all virtual asset-related activities in the country.
💻 Formal Regulation of Digital Assets
With this development, licensed virtual asset service providers (VASPs) such as crypto exchanges, digital wallets, and fintech platforms will now be able to operate under a regulated system and access the formal banking sector.
Banks and financial institutions are permitted to open accounts for licensed companies, provided they meet strict compliance requirements and verification standards.
🏦 Banking and Compliance Rules
Under the new guidelines:
- Banks must verify the validity of all VASP licenses before onboarding clients
- Separate rupee-denominated accounts will be maintained for customer funds
- Cash deposits and withdrawals for these accounts will not be allowed
- Strong anti-money laundering (AML) checks and monitoring will be mandatory
The central bank has also clarified that financial institutions are not allowed to directly invest in or trade virtual assets using their own funds or customer deposits.
🔐 Focus on Security and Oversight
Authorities said the framework is designed to ensure transparency, financial security, and compliance while enabling innovation in the digital economy.
Banks will be required to monitor transactions closely, assess risk profiles, and report suspicious activity under Pakistan’s existing anti-money laundering laws.
📊 Policy Shift in Digital Finance
Previously, Pakistan maintained strict restrictions on crypto-related businesses, with limited access to banking services. This new regulatory framework marks a shift toward controlled adoption of blockchain and digital asset technologies under government supervision.
