Pakistan

Pakistan has established a comprehensive legal framework for virtual assets under the Virtual Assets Act, 2026, with the Pakistan Virtual Assets Regulatory Authority (PVARA) responsible for licensing, supervision, and enforcement. The framework aligns with international FATF standards and mandates licensing for all Virtual Asset Service Providers (VASPs).

Overview

StatusLegal
Risk Score25/100 (Low Risk)
Regionsouth asia
CurrencyPKR

Tax Information

VAT on CryptoNo

Licensing & Registration

RequiredYes
RegulatorPVARA
FrameworkVirtual Assets Act, 2026
Easemedium
Cost (USD)N/A - no licensing pathway

Licensing is mandatory for all VASPs. Transitional operators must apply for NOC by September 5, 2026. The framework includes a sandbox for innovative products and requires local incorporation for licensing.

Enforcement Activity

Level: Low

No detailed enforcement information available

CBDC

StatusResearch
NamePakistan CBDC
Issuing AuthorityState Bank of Pakistan
Modelretail

AML / KYC

KYC RequiredYes
Travel RuleYes
FATF MemberYes
FATF Statuscompliant
FATF BodyFATF
Suspicious-Activity ReportingYes

DeFi, Stablecoins & NFTs

Status: regulated

DeFi activities fall under the regulatory framework requiring licensing and AML compliance, ensuring consumer protection and market integrity.

Stablecoins

Status: regulated

Stablecoins are regulated under the Virtual Assets Act, 2026, requiring compliance with licensing and AML standards.

NFTs

Status: unregulated

Mining

LegalYes
Electricity Cost$0.079/kWh
Renewable Energy35%
Infrastructurefair

Mining is legal but restricted under current regulations. Electricity cost is moderate with a significant share of renewables. Infrastructure is fair but developing.

Geopolitical Risk

Stabilitymoderate
SanctionsNo
Corruption Index27/100
Banking Accessmoderate
Sanctions Program ActiveNo

Risk Factors

Pakistan has moderate political stability with ongoing regional tensions and economic challenges. The crypto regulatory environment is improving with formal licensing and AML compliance. Banking access for crypto firms is moderate, and internet freedom is partly free.

Recent Political Events

Sources

Frequently Asked Questions

Is cryptocurrency legal in Pakistan?

Pakistan has established a comprehensive legal framework for virtual assets under the Virtual Assets Act, 2026, with the Pakistan Virtual Assets Regulatory Authority (PVARA) responsible for licensing, supervision, and enforcement. The framework aligns with international FATF standards and mandates licensing for all Virtual Asset Service Providers (VASPs).

What is the FATF status of Pakistan?

Pakistan is classified by FATF as: compliant.

Are VASPs licensed in Pakistan?

Yes, licensing is required for VASPs.

What is the AML/KYC regime in Pakistan?

KYC is mandatory for crypto businesses.

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Last reviewed: 2026-09-21 · Data source: Soken Crypto Legal Map

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