The newly approved legislation grants statutory status to the Pakistan Virtual Assets Regulatory Authority, which will now oversee the licensing and supervision of cryptocurrency exchanges and digital asset platforms operating within the country.

Under this strict legal framework, unlicensed crypto operations face severe penalties, including fines reaching up to 50 million rupees and potential imprisonment, as authorities move to eliminate illicit financial flows in the sector.

The government previously launched the Pakistan Crypto Council in 2025 to coordinate policies between the State Bank and the Securities and Exchange Commission, aiming to formalize the nation’s rapidly growing digital finance ecosystem.

This move aims to protect millions of local investors while exploring advanced projects like tokenizing government assets. It marks a transition from a regulatory grey area to a transparent, secure digital asset market.