ISLAMABAD – Pakistan’s crypto market is entering new chapter of accountability as Pakistan Virtual Assets Regulatory Authority (PVARA) joins country’s anti-money laundering framework, strengthening oversight of digital asset businesses and efforts to curb illicit money flows.
National Executive Committee on Anti-Money Laundering and Counter-Financing of Terrorism approved adding PVARA to Schedule IV of the Anti-Money Laundering Act (AMLA), strengthening the authority’s role in overseeing cryptocurrency exchanges and other virtual asset service providers.
The decision brings regulatory accountability to a market used by millions of Pakistanis, and it reinforces efforts to establish clearer operating requirements for crypto businesses as the country develops a formal framework for digital finance.
Under the strengthened oversight arrangements, licensed platforms must maintain anti-money laundering programmes, report suspicious transactions and meet applicable Financial Monitoring Unit requirements. Firms that fail to comply can face regulatory action.
For businesses seeking to enter Pakistan’s digital asset market, the development adds another layer of clarity to a sector undergoing rapid regulatory change. Stronger supervision could also help build confidence in licensed platforms and support their integration with the wider financial system.
PVARA’s mandate rests on the Virtual Assets Act, passed by parliament in March 2026, following a presidential ordinance introduced in 2025. The legislation established a dedicated legal framework for licensing and supervising virtual asset businesses, alongside market surveillance provisions.
Chairman Bilal bin Saqib has described the Act as Pakistan’s first dedicated cryptocurrency law. He has also said the regulator has issued No Objection Certificates to several firms as it advances the authorisation process. The authority works alongside the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan. While PVARA leads licensing and supervision within its mandate, the central bank is working on banking arrangements for virtual asset businesses.
Pakistan’s large crypto user base makes the transition particularly significant. Bringing more activity into a supervised environment could improve transparency and give businesses a clearer route into the formal economy.
PVARA operates regulatory sandbox where companies can test services under supervision before pursuing full licences. The initiative provides space for innovation while allowing the regulator to assess emerging products and potential risks.
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Pakistan’s boom in crypto market faces critical test to keep dirty money out of digital finance. Criminals are exploiting weak ID checks and poorly supervised platforms to disguise illicit funds as routine trading. Pakistan’s Financial Monitoring Unit has flagged virtual assets as vulnerable to money laundering and terrorist financing, citing analysis that included domestic suspicious transaction reports.
The scale makes effective oversight essential. Around 40 million Pakistanis hold crypto-linked accounts, PVARA Chairman Bilal bin Saqib told a Senate committee, according to reporting in September 2026. The figure represents an official estimate rather than a verified count of active traders
Stronger safeguards can prevent criminal proceeds from slipping into legitimate trading activity. Verifying customers, monitoring unusual transfers and reporting suspicious transactions give authorities a better chance of detecting abuse while supporting a more accountable crypto market.
