Pakistan is making significant strides in the world of digital assets, as its parliament recently passed the Virtual Assets Act of 2026. The new legislation solidifies the Pakistan Virtual Assets Regulatory Authority (PVARA) as the nation’s primary digital asset regulator, tasked with overseeing the burgeoning crypto industry and ensuring compliance with international standards.
Established in July 2025, PVARA has already begun issuing no objection certificates (NOCs) and developing banking rails in collaboration with the State Bank of Pakistan. This move is part of a broader strategy to create a comprehensive licensing framework that aligns with global anti-money laundering (AML) and financial integrity standards, according to PVARA Chairman Bilal Bin Saqib.
From Skepticism to Strategic Reserve
The journey to this landmark legislation has been marked by a significant shift in the government’s stance on cryptocurrencies. In November 2024, Pakistan reversed its long-standing opposition to crypto, recognizing it as legal tender. Since then, the country has announced a Bitcoin strategic reserve and allocated 2,000 megawatts of electricity for mining and AI data centers.
Digital assets are increasingly seen as the foundation of a new financial infrastructure, particularly for the global south. At the Bitcoin MENA conference in December 2025, Bin Saqib emphasized that blockchain technology is critical to Pakistan’s economic development, positioning the country as a leader in the region.
International Collaborations and Global Recognition
Pakistan’s commitment to digital assets has not gone unnoticed. In January, the country signed a memorandum of understanding with SC Financial Technologies, a subsidiary of World Liberty Financial, to explore the use of the USD1 stablecoin for digital payments, including cross-border transactions and remittances.
The country’s progress has also earned it a high ranking on Chainalysis’ 2025 Global Crypto Adoption Index, placing it near the top of the list. Binance co-founder Changpeng Zhao has even suggested that Pakistan could emerge as a global hub for digital assets by 2030, provided it continues its rapid pace of development and regulatory progress.
Looking Ahead: A Bright Future for Pakistan’s Crypto Ecosystem
With the Virtual Assets Act of 2026 now awaiting the signature of President Asif Ali Zardari, Pakistan is poised to become a major player in the global crypto landscape. The establishment of a comprehensive regulatory framework, combined with strategic investments in infrastructure and international collaborations, positions the country to capitalize on the growing demand for digital assets.
As the global financial ecosystem continues to evolve, Pakistan’s proactive approach to digital assets could serve as a model for other nations seeking to integrate blockchain technology into their economies. The coming years will likely see Pakistan emerge as a hub for innovation, investment, and growth in the digital asset space.
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