<p>Karachi: Pakistan's Central Bank has legalised the use of virtual assets, including <a href="https://www.deccanherald.com/tags/cryptocurrency">crypto currencies</a>, by introducing the Virtual Assets Act 2026, marking one of the biggest changes in the country's digital financial landscape in recent years.</p>.<p>Under the new law, the State Bank of Pakistan has established the Pakistan Virtual Asset Regulatory Authority (PVARA) as the statutory body responsible for licensing, regulating, supervising, and overseeing all virtual asset-related activities in the country.</p>.<p>"Subject to strict compliance with the conditions outlined herein, SBP Regulated Entities (REs) may open bank accounts of entities duly licensed by PVARA as Virtual Asset Service Providers (VASPs)," said a circular issued by the central bank on Tuesday.</p>.<p>It said that the new instructions will take effect immediately.</p>.Selfie, 'penny drop' mandated as KYC for crypto customers in India.<p>The move effectively creates <a href="https://www.deccanherald.com/tags/pakistan">Pakistan</a>'s first formal legal framework for crypto and digital asset businesses.</p>.<p>The PVARA has now formally legalised the use and transaction of digital currency assets in Pakistan and by overseas Pakistanis and in export and import businesses.</p>.<p>In the past, Pakistan maintained a highly restrictive stance on crypto and digital assets, with banking channels largely closed to such businesses.</p>.<p>The new regulation means that licensed crypto exchanges, wallet providers, digital asset platforms, and related fintech companies can now access Pakistan's formal banking system.</p>
<p>Karachi: Pakistan's Central Bank has legalised the use of virtual assets, including <a href="https://www.deccanherald.com/tags/cryptocurrency">crypto currencies</a>, by introducing the Virtual Assets Act 2026, marking one of the biggest changes in the country's digital financial landscape in recent years.</p>.<p>Under the new law, the State Bank of Pakistan has established the Pakistan Virtual Asset Regulatory Authority (PVARA) as the statutory body responsible for licensing, regulating, supervising, and overseeing all virtual asset-related activities in the country.</p>.<p>"Subject to strict compliance with the conditions outlined herein, SBP Regulated Entities (REs) may open bank accounts of entities duly licensed by PVARA as Virtual Asset Service Providers (VASPs)," said a circular issued by the central bank on Tuesday.</p>.<p>It said that the new instructions will take effect immediately.</p>.Selfie, 'penny drop' mandated as KYC for crypto customers in India.<p>The move effectively creates <a href="https://www.deccanherald.com/tags/pakistan">Pakistan</a>'s first formal legal framework for crypto and digital asset businesses.</p>.<p>The PVARA has now formally legalised the use and transaction of digital currency assets in Pakistan and by overseas Pakistanis and in export and import businesses.</p>.<p>In the past, Pakistan maintained a highly restrictive stance on crypto and digital assets, with banking channels largely closed to such businesses.</p>.<p>The new regulation means that licensed crypto exchanges, wallet providers, digital asset platforms, and related fintech companies can now access Pakistan's formal banking system.</p>