PVARA Issues Advisory on Virtual Asset Announcements

Key Takeaways:

• Financial institutions and startups must secure formal PVARA approval before launching or publicly announcing any virtual asset partnerships, pilots, or MoUs.
• To avoid penalties and FATF-related risks, companies are encouraged to utilize official compliance channels like the Regulatory Sandbox and No Objection Certificates (NOCs).
• The Virtual Assets Act 2026 confirms that all services involving stablecoins, tokenization, and blockchain-based remittances fall strictly under PVARA’s jurisdiction.

Pakistan’s Virtual Assets Regulatory Authority (PVARA) has issued a new regulatory advisory. It mandates that any virtual asset pilot, partnership, or implementation involving users in Pakistan must receive prior authorization from PVARA before launching or publicly announcing. The advisory follows a series of recent announcements by financial institutions regarding Memoranda of Understanding (MoUs), pilot programs, and partnerships linked to virtual assets. 

Some of these initiatives included plans to use stablecoins for remittances and cross-border payments, but were reportedly disclosed without prior clearance with PVARA. 

Expansion of Regulatory Scope Under the Virtual Assets Act 2026 

Under the Virtual Assets Act 2026, PVARA clarifies that services involving the issuance, transfer, custody, exchange, or arrangement of virtual assets fall within its regulatory authority. This includes stablecoins and blockchain-based financial solutions. PVARA also warned that announcing agreements or pilots without prior approval could expose institutions to regulatory penalties, reputational damage, and compliance risks related to FATF compliance. 

Regulatory Frameworks for Pilot Programs

Despite tightening oversight, PVARA emphasized its commitment to supporting responsible innovation in Pakistan’s digital asset ecosystem. PVARA encouraged companies planning virtual asset pilots, stablecoin use cases, blockchain-based allied solutions, or tokenization projects to engage early through its Regulatory Sandbox, No Action Relief Letters, or No Objection Certificate (NOC) processes to ensure compliance and smooth implementation.