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).
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | south asia |
| Currency | PKR |
| Capital Gains (Personal) | No crypto-specific rule; under general rules capital gains on movable capital assets other than listed securities are taxed at normal slab rates (up to 45% for non-salaried individuals) |
| Capital Gains (Corporate) | 29% corporate income tax |
| VAT on Crypto | No |
Pakistan has no crypto-specific income tax provision. The Virtual Assets Act, 2026 sets up licensing but does not impose a tax; gains fall under the Income Tax Ordinance 2001 general rules, under which gains on movable capital assets other than listed securities are taxed at normal slab rates. The 2026-27 federal budget introduced no new crypto tax.
| Required | Yes |
| Regulator | PVARA |
| Framework | Virtual Assets Act, 2026; Pakistan Virtual Asset Services Regulations, 2026 (S.R.O. 1419(I)/2026) and Pakistan Virtual Asset Services Activity Specific Regulations, 2026 (S.R.O. 1420(I)/2026), notified 21 August 2026 |
| Ease | medium |
| Cost (USD) | N/A - no licensing pathway |
Licensing by PVARA is mandatory for all VASPs. The NOC Regulations, 2025 applied until 21 August 2026, when the Pakistan Virtual Asset Services Regulations, 2026 and Activity Specific Regulations, 2026 took effect; pending applications proceed under the 2026 framework. The framework includes a regulatory sandbox.
No detailed enforcement information available
| Status | Research |
| Name | Pakistan CBDC |
| Issuing Authority | State Bank of Pakistan |
| Model | retail |
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | compliant |
| Suspicious-Activity Reporting | Yes |
Status: regulated
DeFi activities fall under the regulatory framework requiring licensing and AML compliance, ensuring consumer protection and market integrity.
Status: regulated
Stablecoins are regulated under the Virtual Assets Act, 2026, requiring compliance with licensing and AML standards.
Status: unregulated
| Legal | Yes |
| Electricity Cost | $0.079/kWh |
| Renewable Energy | 35% |
| Infrastructure | fair |
Mining is legal but restricted under current regulations. Electricity cost is moderate with a significant share of renewables. Infrastructure is fair but developing.
| Stability | moderate |
| Sanctions | No |
| Corruption Index | 27/100 |
| Banking Access | moderate |
| Sanctions Program Active | No |
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
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).
Pakistan is classified by FATF as: compliant.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-09-21 · Data source: Soken Crypto Legal Map
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