The Virtual Assets Act, 2026 (enacted March 2026) establishes Pakistan's first comprehensive statutory framework for virtual assets, replacing the 2025 Ordinance. It requires PVARA licensing for all virtual asset service providers including stablecoin issuers, mandates 100% segregated HQLA reserves and par redemption for fiat-referenced tokens, and prohibits unlicensed algorithmic stablecoins. The State Bank of Pakistan lifted prior banking restrictions for licensed entities via its April 2026 circular. Discussions continue on a potential national stablecoin. The regime emphasizes AML/CFT compliance, consumer protection, and market integrity.
Applicable Laws:
Virtual Assets Ordinance, 2025 (Ordinance No. VII of 2025) - https://www.senate.gov.pk/uploads/documents/1755602422_748.pdf
