Pakistan passes Virtual Assets Bill to legalise cryptocurrencies and regulate digital assets

Pakistan’s National Assembly has passed the Virtual Assets Bill, 2026, formally legalising cryptocurrencies and establishing a regulatory framework for digital assets in the country’s financial system.

The legislation, introduced by Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry, had previously been approved by the Senate earlier this year. It provides for the creation of a specialised regulatory authority responsible for licensing, supervising and regulating virtual assets and virtual asset service providers (VASPs).

According to the government, the bill recognises virtual assets as an increasingly significant component of the global financial system and seeks to introduce oversight aimed at improving investor protection, transparency and market stability.

Under the new framework, the proposed authority will oversee digital asset trading platforms, support the development of Pakistan’s blockchain and cryptocurrency sectors, and strengthen safeguards against financial crimes such as money laundering and fraud. The legislation also highlights the need to align with international regulatory standards and includes provisions for Shariah-compliant virtual asset services.

Analysts say the move could strengthen Pakistan’s position in the emerging digital asset market by providing legal certainty for investors and businesses operating in the sector. A formal regulatory structure may also encourage foreign investment and support the development of fintech innovation in the country.

The bill represents Pakistan’s first comprehensive attempt to integrate cryptocurrencies and other virtual assets into the country’s regulated financial ecosystem while balancing technological innovation with financial risk management.