Pakistan’s lower house of parliament approved legislation to regulate digital assets, paving the way for the creation of a dedicated watchdog to oversee the country’s virtual currency market.
The National Assembly passed the “Virtual Assets Bill, 2026,” after the Senate cleared the legislation on February 27. The bill will now be sent to President Asif Ali Zardari for assent before becoming law.
The legislation establishes the Pakistan Virtual Assets Regulatory Authority to license, regulate and supervise virtual assets and service providers operating in the country. The move formalizes a market that has largely operated without a comprehensive legal framework, even as digital asset adoption has grown among retail users.
Under the law, the authority will be chaired by a federal government appointee and include senior officials such as the governor of the State Bank of Pakistan, the chairperson of the Securities and Exchange Commission of Pakistan, the secretaries of finance and law, the head of the National AML-CFT Authority, and the chairperson of the Pakistan Digital Authority.
Two independent directors with expertise in digital finance and technology will also be appointed.
According to the statement of objects and reasons, the authority will be empowered to combat money laundering, terrorist financing and other illicit activities involving virtual assets in line with international standards. It will also be tasked with fostering innovation, financial inclusion and the development of Shariah-compliant digital asset services.
The government says the framework is intended to create an enabling environment for safer trading and greater transparency, while strengthening oversight of a sector that policymakers increasingly view as both a financial risk and an economic opportunity.
