PVARA Issues Advisory Requiring Prior Authorization for Virtual Asset Pilots and Partnerships

The Pakistan Virtual Assets Regulatory Authority (PVARA) has today issued a Regulatory Advisory clarifying that any virtual asset pilot, partnership, or implementation involving users in Pakistan requires prior authorization from the Pakistan Virtual Assets Regulatory Authority before commencement or public announcement.

The Advisory follows recent public announcements by financial institutions of Memoranda of Understanding, pilots, and partnerships involving virtual assets, including the use of stablecoins for remittances and cross-border payments, made without prior engagement with PVARA.

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. Any agreement or announced pilot that results in, or directly enables, the provision of such services requires prior authorization. Public announcements of such initiatives without prior PVARA engagement may give rise to regulatory, reputational, and FATF compliance risks, including the possibility that the proposed activity may not lawfully proceed.

Pakistan Virtual Assets Regulatory Authority remains committed to enabling responsible innovation. Persons contemplating virtual asset pilots, stablecoin use cases, blockchain-based solutions, or tokenization structures are encouraged to engage early through the Regulatory Sandbox, No-Action Relief Letters, or the NOC process.