ISLAMABAD: A Pakistani Senate committee approved a draft bill to regulate virtual assets on Wednesday, paving the way for cryptocurrency trading to become legal in the country.
Pakistan has been undertaking efforts over the past couple of months in drafting rules to regulate the fast-expanding market for digital coins and tokens, requiring virtual-asset service providers to obtain government approval. Islamabad’s moves to adopt digital currency is a significant shift in policy, considering it had previously banned cryptocurrency transactions in 2018 citing financial risks and lack of regulation.
Last month, Pakistan signed a memorandum of understanding with a company affiliated with the World Liberty Financial, a crypto-based finance platform launched in September 2024 and linked to US President Donald Trump’s family. The agreement explores the use of a dollar-linked stablecoin for cross-border payments.
Pakistan Senate’s Standing Committee on Cabinet approved the draft “Virtual Asset Act 2026” during a meeting on Wednesday. The bill relates to the Pakistan Virtual Assets Regulatory Authority’s mandate (PVARA) and its power to issue licenses.
“So under the new law, what will happen is that there will be an authority which already exists, the Pakistan Virtual Asset Regulatory Authority (PVARA), that will have the power to give licenses in which crypto coins can be issued, in which mining can be done, and they will be able to regulate the whole (crypto) market,” Senator Dr. Afnan Ullah Khan, a member of the committee, told Arab News.
He said under the new law, PVARA will be able to check which company has the license to issue crypto coins and which ones can raise funds for this purpose.
When asked whether crypto trading will be legal in Pakistan after the bill passes in parliament, Dr. Afnan said the draft law will first be presented in the Senate and National Assembly for approval. After that, he said the president will sign it into law.
“Then it will become legal,” Dr. Afnan said. “It will not take a few weeks, it will take maybe like a week.”
He added that major crypto coins such as Bitcoin, Ethereum and XRP will be traded in Pakistan through crypto exchanges.
Dr. Afnan said the bill was analyzed by committee members, adding that the final draft was approved with the consent of all parties.
He said the law also caters to concerns on the use of cryptocurrency for money laundering and illegal purposes, adding that it also proposes fines for violations by licensees.
PVARA last year issued No Objection Certificates (NOCs) to two global crypto exchanges HTX and Binance.
PVARA said the NOCs allow Binance and HTX to conduct preparatory and engagement activities within Pakistan under “defined regulatory oversight,” clarifying that it does not constitute a “full operating license.”
