Karachi: Pakistan has formally brought virtual assets under a regulatory framework following the enactment of the Virtual Assets Act 2026, according to a circular issued by the State Bank of Pakistan (SBP).
Under the new law, the Pakistan Virtual Asset Regulatory Authority (PVARA) has been established as the dedicated body responsible for licensing, regulating, and supervising virtual asset activities in the country.
The SBP said that banks and financial institutions regulated by it may now open accounts for entities licensed by PVARA as Virtual Asset Service Providers (VASPs), subject to strict compliance requirements.
Banks will be required to verify the authenticity of VASP licences directly with PVARA before onboarding any entity and must maintain proper records of approval.
For operational purposes, banks will open separate “client money accounts” for licensed VASPs. These accounts will be rupee-denominated and strictly used for authorised transactions only. Cash deposits and withdrawals will not be permitted, and funds in these accounts cannot be used as collateral or for lending purposes.
The SBP has also imposed strict safeguards, including full segregation of client funds, ongoing monitoring, enhanced customer due diligence, and mandatory reporting of suspicious transactions to relevant authorities.
Banks will be required to assess and risk-rate VASPs using updated compliance models, in line with anti-money laundering and counter-terrorism financing regulations.
However, banks have been barred from investing, trading, or holding virtual assets themselves using their own funds or customer deposits. They will remain fully responsible for compliance with existing SBP and foreign exchange regulations.
The framework also allows limited banking access for entities holding No Objection Certificates (NOCs) from PVARA, enabling them to complete licensing requirements before full approval.
Officials said full virtual asset services will only be permitted once a licence is formally granted by PVARA, marking a controlled and regulated entry of the sector into Pakistan’s financial system.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
