In a significant move for the financial landscape of Pakistan, a Senate committee has approved a draft bill aimed at regulating virtual assets. This landmark decision is set to bring cryptocurrency trading into the legal fold within the nation, potentially revolutionizing its financial markets. The Senate's Standing Committee on Cabinet gave the green light to the draft "Virtual Asset Act 2026," a document critical to defining the mandate of the Pakistan Virtual Assets Regulatory Authority (PVARA) and its licensing authority.
The newly approved legislation outlines the powers and responsibilities of PVARA, which plays a central role in the regulation of virtual assets. As explained by Senator Dr. Afnan Ullah Khan, who sits on the committee, PVARA will have authoritative oversight, including the power to issue licenses for crypto coin issuance and mining. This marks a structured approach to regulating the burgeoning cryptocurrency market, ensuring activities are conducted within a legal and structured framework.
While the committee's approval marks a crucial step, the journey toward full legalization involves additional legislative procedures. The draft bill will be presented to both the Senate and National Assembly for a round of approvals, after which the President’s signature will be sought to formally enact the bill into law. Dr. Afnan anticipates this process to conclude swiftly, potentially within a week's time, leading to a formalization of the legal status of cryptocurrency trading in Pakistan.
With the enactment of the Virtual Asset Act, major cryptos like Bitcoin, Ethereum, and XRP could become regularly traded commodities on Pakistan-based crypto exchanges. This development promises to create a robust trading ecosystem and aligns with global trends where cryptocurrencies are becoming increasingly integrated into conventional financial systems. Nevertheless, the bill also addresses potential misuse, particularly regarding money laundering and illicit activities. Stringent measures, including specific fines and compliance requirements, are included to mitigate these risks.
PVARA's proactive stance was evident last year when it issued No Objection Certificates (NOCs) to major global crypto exchanges like HTX and Binance. These NOCs enable the exchanges to engage with the Pakistani market under defined regulatory parameters, although they stop short of granting full operational licenses. As such, the pending legislation will likely further clarify operational terms and enhance the regulatory framework governing these exchanges.
This groundbreaking legislative move is more than just a regulatory change; it is a strategic step towards economic innovation. By embracing cryptocurrencies, Pakistan positions itself on the financial frontier, potentially attracting investments and technological advancements. As this market unfolds under the new legal canopy, stakeholders are poised to navigate a well-regulated, transparent, and secure crypto landscape.
