Pakistan

Pakistan passed the Virtual Assets Act 2026 (March 9, 2026), establishing PVARA (Pakistan Virtual Assets Regulatory Authority) as the permanent federal crypto regulator. The SBP reversed its 2018 banking ban on April 14, 2026 via BPRD Circular Letter No. 10 of 2026. PVARA is issuing No Objection Certificates to VASPs; Binance and HTX received NOCs in December 2025. Full VASP licenses are being rolled out under a phased framework. A 15% capital gains tax applies to crypto profits above PKR 500,000.

Overview

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

Tax Information

Capital Gains (Personal)No specific crypto tax; general CGT rates (12.5-15%) could apply if formalized
Capital Gains (Corporate)29% CIT (general)
VAT on CryptoNo
Staking TaxUnclear - no specific guidance
Airdrop TaxUnclear

No crypto-specific tax guidance available.

Licensing & Registration

RequiredYes
RegulatorPVARA
FrameworkVirtual Assets Act 2026 (passed March 9, 2026); preceded by Pakistan Virtual Assets Ordinance 2025 (promulgated July 8, 2025). SBP BPRD Circular Letter No. 10 of 2026 (April 14, 2026) reversed 2018 banking ban for PVARA-licensed entities.
Easevery_complex
Cost (USD)N/A - no licensing pathway

Enforcement Activity

Level: Low

No detailed enforcement information available

AML / KYC

KYC RequiredYes
Travel RuleNo
FATF MemberNo
FATF Statuscompliant - not on grey list
FATF BodyAPG
Suspicious-Activity ReportingYes

DeFi, Stablecoins & NFTs

Status: Restricted

Stablecoins

Status: Restricted

NFTs

Status: unregulated

Mining

LegalYes
Electricity Cost$0.079/kWh
Renewable Energy35%
Infrastructurefair

Mining is restricted due to regulatory uncertainty and high electricity costs; no formal mining licenses issued. Electricity cost data from 2026 estimates.

Geopolitical Risk

Stabilitymoderate
SanctionsNo
Corruption Index32/100
Banking Accessrestricted

Risk Factors

Pakistan faces moderate political instability and regulatory uncertainty impacting crypto businesses. Banking access for crypto firms remains restricted. No major international sanctions currently.

Sources

Frequently Asked Questions

Is cryptocurrency legal in Pakistan?

Pakistan passed the Virtual Assets Act 2026 (March 9, 2026), establishing PVARA (Pakistan Virtual Assets Regulatory Authority) as the permanent federal crypto regulator. The SBP reversed its 2018 banking ban on April 14, 2026 via BPRD Circular Letter No. 10 of 2026. PVARA is issuing No Objection Certificates to VASPs; Binance and HTX received NOCs in December 2025. Full VASP licenses are being rolled out under a phased framework. A 15% capital gains tax applies to crypto profits above PKR 500,00

What is the FATF status of Pakistan?

Pakistan is classified by FATF as: compliant - not on grey list.

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: 2026-06-01 · Data source: Soken Crypto Legal Map

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