Pakistan Takes Major Step Towards Crypto Regulation
In a significant move to formalize its digital asset space, Pakistan's Virtual Asset Regulatory Authority (PVARA) has opened a public consultation on the draft 'Virtual Asset Service Regulations 2026' and accompanying activity-specific manuals. The feedback period is set from June 11 to July 2, 2026 (4:00 PM Pakistan Standard Time).
Blueprint for a Comprehensive Regulatory Regime
The proposed framework seeks to establish a clear licensing and supervision system for Virtual Asset Service Providers (VASPs). Key pillars of the draft regulations include:
- Corporate Governance & Market Conduct: Setting clear standards for internal management and fair business practices.
- Client Asset Safeguarding: Mandating the segregation of client funds from company assets to enhance user protection.
- Technology & Cyber Resilience: Imposing robust technical requirements and ongoing cybersecurity protocols.
- Integrated Risk Management: Requiring comprehensive programs to address operational, market, and liquidity risks.
- AML/CFT Compliance: Outlining detailed measures to align with the standards of the Financial Action Task Force (FATF).
The initiative is supported by ten specialized licensing handbooks designed to provide granular guidance for different service categories.
Aligning with Global Standards for Future Growth
PVARA stated that this consultation aims to refine the regulatory framework, with a core objective of bringing Pakistan's virtual asset oversight in line with international norms. This alignment with FATF recommendations is seen as a crucial step to foster a secure, transparent, and investment-friendly ecosystem for digital assets in the country, promoting sustainable market development.