Pakistan’s National Assembly on Tuesday approved the Virtual Assets Bill 2026, marking a significant step toward creating a formal regulatory framework for digital currencies and related services in the country. The legislation, which was passed following the suspension of the scheduled Private Members’ Day business, had already received approval from the Senate on February 27, 2026, and will now be sent to the President for final assent before becoming law.
The bill, presented in the National Assembly by Federal Minister for Parliamentary Affairs Tariq Fazal Chaudhry, was adopted through a majority vote. It lays the foundation for the establishment of the Pakistan Virtual Assets Regulatory Authority, tasked with licensing, regulating, and supervising virtual assets and virtual asset service providers operating in Pakistan. Under the proposed law, the authority will have the mandate to develop policies, issue regulations, and supervise all activities related to digital assets. The legislation seeks to introduce a structured legal framework to regulate virtual asset markets, ensuring alignment with international financial oversight standards while supporting innovation and investor protection.
The regulatory authority will consist of several key members, including the secretary of the Ministry of Finance, the secretary of the Ministry of Law and Justice, the governor of the State Bank of Pakistan, the chairperson of the Securities and Exchange Commission of Pakistan, the chairman of the National AML-CFT Authority, and the chairperson of the Pakistan Digital Authority. In addition, two independent directors with expertise in virtual asset markets, digital technology, and digital finance will be appointed by the federal government to provide specialized oversight. According to the bill, the authority will determine its policy direction, approve its budget, and formulate regulations governing the sector. It is expected to play a central role in establishing standards for safe trading in digital assets while addressing illegal activities such as money laundering, fraud, and other financial crimes.
The statement of objects and reasons accompanying the bill highlights that the new framework is designed to promote financial inclusion and innovation while ensuring compliance with global standards for anti-money laundering (AML) and countering the financing of terrorism (CFT). The legislation also emphasizes the development of Shariah-compliant virtual asset services, opening the door for digital financial products that meet Islamic finance requirements.
Experts suggest that the creation of the Pakistan Virtual Assets Regulatory Authority could significantly boost confidence in the country’s digital asset markets by providing clear rules and regulatory oversight. The move is expected to attract both domestic and international investment in the crypto and fintech sectors while providing a safer environment for trading digital currencies.
By formalizing oversight mechanisms, the legislation also positions Pakistan to better monitor and manage risks associated with virtual assets, including cyber threats, market volatility, and illicit financial flows. Analysts note that the law aligns with global best practices in digital asset regulation, which could help integrate Pakistan into the broader international fintech and crypto ecosystem.
The passage of the Virtual Assets Bill 2026 reflects a broader trend of governments worldwide seeking to regulate emerging digital financial technologies while balancing innovation with security and compliance. In Pakistan, the new legal framework is expected to strengthen the country’s financial infrastructure, support responsible adoption of digital currencies, and promote transparency and accountability in the virtual asset sector.
Overall, the legislation represents a major milestone in Pakistan’s efforts to modernize its financial regulatory landscape and embrace the opportunities presented by blockchain, fintech, and digital assets while mitigating associated risks.
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