The Pakistan Virtual Assets Regulatory Authority (PVARA) has issued an advisory stating that any virtual asset pilot, partnership, or implementation involving users in Pakistan must obtain prior authorization before launch, according to a press release.
The advisory follows recent public announcements by financial institutions regarding memoranda of understanding, pilot projects, and partnerships involving virtual assets, including the use of stablecoins for remittances and cross-border payments, without prior engagement with the regulator.
PVARA said that under the Virtual Assets Act 2026, the provision of virtual asset services, including issuance, transfer, custody, exchange, and related blockchain-based solutions, falls under its regulatory framework.
The authority warned that any agreement or pilot that enables such services requires prior approval, and public announcements without regulatory clearance may lead to compliance, reputational, and FATF related risks.
It added that such activities may not be allowed to proceed if they do not meet regulatory requirements.
The regulator said it remains committed to supporting responsible innovation and encouraged stakeholders to engage early through mechanisms such as the regulatory sandbox, no action relief letters, and the NOC process.
