Pakistan Senate approves bill to regulate cryptocurrencies

Pakistan’s upper house of parliament has passed the bill to regulate digital assets and increase formal legal oversight.

The bill will now proceed to the lower house, the National Assembly, for consideration before receiving presidential assent and becoming law.

The move marks a historic milestone in the country where virtual assets and cryptocurrencies were banned till two years ago, despite being one of the world's largest cryptocurrency markets by adoption.

However, recently, the government has pushed to promote the expansion of virtual assets and blockchain by setting up the Pakistan Virtual Assets Regulatory Authority (PVARA).

The Virtual Assets Bill 2026, passed by the Senate on Friday, establishes a comprehensive framework for the PVARA to license, regulate, and supervise virtual asset service providers operating in Pakistan.

The bill aims to protect investors, ensure market transparency, and align Pakistan's digital asset framework with international standards.

Under the proposed law, PVARA will oversee the registration and licensing of virtual asset exchanges, custody providers, and other service providers.

The authority will establish conduct of business requirements, enforce customer safeguards, and implement measures to prevent money laundering and financial crime while promoting responsible innovation.

The legislation introduces comprehensive regulatory provisions, including mandatory licensing for virtual asset service providers, customer protection requirements, anti-money laundering and counter-terrorism financing compliance, market surveillance mechanisms, and coordination with other financial regulators — the State Bank of Pakistan and Securities and Exchange Commission of Pakistan.

"The passage of this bill through the Senate represents a defining moment for Pakistan's digital economy," said Bilal Bin Saqib, the regulatory body’s chairperson.

"We are transforming years of unregulated activity into a transparent, secure, and investor-friendly ecosystem that positions Pakistan as a credible jurisdiction for virtual assets."