Key Highlights
- Pakistan’s Senate committee approved a draft bill to make cryptocurrency trading legal.
- PVARA will give licenses, control exchanges, and regulate crypto activities, including major coins like Bitcoin, Ethereum, and XRP.
Pakistan’s Senate committee has reportedly approved a draft bill to make cryptocurrency trading legal in the country.
The draft, called the “Virtual Asset Act 2026,” will set out rules on how cryptocurrency will be managed, as well as how crypto exchanges should operate in the country.
PVARA to control the crypto licenses
According to local reports, the Pakistan Virtual Assets Regulatory Authority (PVARA) will have the power to issue licenses for crypto coins and mining, and to regulate companies operating in the crypto space.
“So under the new law, what will happen is that there will be an authority which already exists, the Pakistan Virtual Asset Regulatory Authority (PVARA), that will have the power to give licenses in which crypto coins can be issued, in which mining can be done, and they will be able to regulate the whole (crypto) market,” Senator Dr. Afnan Ullah Khan, a member of the committee, said.
He added that the authorities will also check which company can raise funds and issue cryptocurrency. Dr. Afnan explained that the bill will first go to the Senate and the National Assembly for approval, and after the president signs it, crypto trading in the country will be legal.
He also mentioned that major cryptocurrencies, including Bitcoin, Ethereum, and XRP, will be traded through crypto exchanges in Pakistan.
Rules to prevent illegal activity
The draft includes rules to stop illegal activities like money laundering. Dr. Afnan said authorities will set a fine for any crypto company that breaks the rules.
Pakistan has been working on this framework for several months. This is after banning crypto trading in 2018 because of financial risk and a lack of proper regulation. During that period, authorities prohibited all banks and financial institutions from allowing transactions that involved digital assets.
Despite this, the country’s crypto market was growing underground with the help of peer-to-peer (P2P) trading.
Recent partnerships and preparatory steps
As part of its crypto engagement, Pakistan recently signed an agreement with SC Financial Technologies, a company associated with World Liberty Financial, which is linked to the family of U.S. President Donald Trump.
This deal was about exploring cross-border payment using a USD-backed stablecoin. According to a previous report, SC Financial Technologies will work with Pakistan’s central banks to see how WLFI stablecoin could operate alongside the country’s own digital currency system, which was expected to help with international transfers.
Before the bill, authorities gave No Objection Certificates (NOCs) to global crypto exchanges Binance and HTX. These NOCs let them do preparatory work in Pakistan under supervision, but they are not full licenses to operate yet. The committee reportedly studied the bill carefully and approved it with agreement from all members.
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