Is crypto legal in Pakistan? Regulation & rules (2026)

Parliament passed the Virtual Assets Act 2026 in March 2026, replacing the July 2025 Presidential Ordinance and formally cementing PVARA as the dedicated statutory regulator. Unlicensed VASP operation carries up to PKR 50 million fine and five years imprisonment.

SBP BPRD Circular Letter No. 10 of 2026 (April 14 2026) reversed an eight-year prohibition; banks may open rupee-denominated, interest-free, segregated client money accounts for PVARA-licensed VASPs, but are barred from own-account crypto trading or investment.

The Act explicitly states virtual assets are not legal tender and cannot substitute for the Pakistani Rupee (PKR). Crypto may be held and traded but is classified as digital property.

Section 53 of the Act prohibits issuance of virtual assets whose value is maintained solely by algorithmic means. Fiat/asset-backed stablecoin issuers must maintain 100% collateral in segregated custody, provide redemption rights, and publish audited reserve disclosures.

PVARA issued No Objection Certificates to Binance and HTX in December 2025 under a phased supervised entry framework; all VASPs, custodians, and token issuers must obtain a PVARA licence before operating in or from Pakistan.

The FBR classifies crypto as property and imposes a flat 15% CGT on profits from sales, trades, or commercial use; gains above PKR 1 million must be reported via FBR IRIS portal. From July 2026, licensed exchanges are legally required to report user transaction data directly to the FBR.