KARACHI – Pakistan Virtual Assets Regulatory Authority (PVARA) issued strong advisory clarifying that all virtual asset-related services, including stablecoin-based remittance solutions, blockchain partnerships, and pilot projects, fall under its regulatory scope under the Virtual Assets Act, 2026.
Authority explicitly clarified that any agreement, MoU, or announced pilot that results in, or directly enables, provision of such services requires prior authorization from PVARA. Without such approval, these initiatives cannot proceed lawfully.
Authority members warned that public announcements of virtual asset initiatives without prior regulatory engagement may trigger serious consequences, including regulatory action, reputational damage, and potential FATF-related compliance risks. Authority also noted that such unapproved activities may ultimately be deemed unlawful and therefore may not be permitted to proceed.
Despite strict stance, PVARA reiterated commitment to fostering responsible innovation in the digital asset space. It encouraged all stakeholders—whether individuals or institutions, considering virtual asset pilots, stablecoin-based solutions, blockchain applications, or tokenization models to engage with the Authority at an early stage.
The recommended channels for engagement include Regulatory Sandbox participation, No-Action Relief Letters, and No Objection Certificate (NOC) process.
PVARA concluded by reinforcing that while innovation is welcomed, it must operate strictly within a regulated framework to ensure legal compliance, financial integrity, and international standards alignment.
About the Author
