PVARA says any deals, pilots involving virtual assets require prior authorisation

Published
0
A representation of cryptocurrencies are seen in this illustration. — Reuters/File
A representation of cryptocurrencies are seen in this illustration. — Reuters/File

The Pakistan Virtual Assets Regulatory Authority (PVARA) said on Monday that any agreement or pilot announced involving virtual assets required prior authorisation.

Earlier this month, the State Bank of Pakistan (SBP) had announced a significant policy change, legalising and encouraging the use of virtual assets through the enactment of the Virtual Assets Act 2026. Under the Act, PVARA is the statutory authority responsible for the licensing, regulation, supervision and oversight of virtual asset activities in Pakistan.

In an advisory published on Monday, the authority said it had noted recent public announcements by financial institutions regarding memoranda of understanding, pilots and partnerships involving virtual assets, including the use of stablecoins for remittances and cross-border payments.

“Under the Virtual Assets Act, 2026, the provision of virtual asset services to users in Pakistan, including the issuance, transfer, custody, exchange, or arrangement of virtual assets, stablecoins, and allied blockchain-based solutions, falls within the regulatory ambit of PVARA,” the authority said.

“Any agreement or announced pilot that results in, or directly enables, the provision of such services requires prior authorisation from PVARA,” it added.

It further emphasised that public announcements of such initiatives without prior engagement with the authority might “give rise to regulatory, reputational and Financial Action Task Force (FATF) compliance risks”, including the possibility that the proposed activity might “not lawfully proceed”.

It said that it was committed to enabling “responsible innovation”.

“Any person (whether natural or legal) contemplating virtual asset pilots, stablecoin use cases, blockchain-based allied solutions, or tokenisation structures should engage early with PVARA through the regulatory sandbox, no-action relief letters, or the no-objection certificate process, and to seek prior authorisation,” it said.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Swat bombing
Updated 04 Aug, 2026

Swat bombing

IT is a bitter irony that terrorists struck a protest against violence in Swat on Sunday, causing at least 17...
Tariff blow
04 Aug, 2026

Tariff blow

FOR an export sector already squeezed by high production costs, the additional 10pc tariff on top of the existing...
Perilous peaks
04 Aug, 2026

Perilous peaks

THE deaths of 10 climbers in an avalanche on Broad Peak is a sad reminder of the perils that many mountaineers face...
Farewell to arms?
Updated 03 Aug, 2026

Farewell to arms?

PALESTINIAN resistance group Hamas recently made a major concession by agreeing to give up its weapons. It should be...
Unplanned future
03 Aug, 2026

Unplanned future

A PROJECTION that Pakistan’s population could reach 400m by 2040 should not be treated as another dramatic number...
No more torture
03 Aug, 2026

No more torture

EVEN the best laws on the books are worth little unless the state shows the willingness to enforce them. This is...