People ask this more than any other question about money in Pakistan right now, and the honest answer has two parts: yes for ordinary people, with conditions for businesses. This guide sets out what the law and the regulators have said, and where the risks still sit.

Disclosure: Crypto Awaz, which publishes the help articles this piece draws on, is a community partner of Fintech Pakistan. We have rewritten the explanation in our own words and say where each point comes from. This is general information, not legal or tax advice.

We could not open the text of the Act itself. Where we describe it, we are relying on Crypto Awaz's summary and on PVARA's own pages, and we say so.

The short answer

According to Crypto Awaz's summary of the Virtual Assets Act, 2026, owning, buying and selling crypto is not a licensed activity for individuals. The Act regulates businesses that provide crypto services, and PVARA, the virtual assets regulator, licenses them. Virtual assets are not legal tender.

What the Act does

  • It targets businesses. Crypto Awaz says the Act applies to virtual asset service providers and token issuers, meaning those who provide services to others as a business on a professional basis.

  • It bans unlicensed services. Offering crypto services in or from Pakistan without a Pakistani company and a PVARA licence is prohibited (section 50, as Crypto Awaz cites it).

  • It sets penalties. For wilful breach, Crypto Awaz reports up to five years in prison, a fine of up to PKR 50 million, or both (section 54).

  • It lets PVARA block unlicensed sites. PVARA can order unlicensed crypto websites, apps and adverts to be blocked (section 61).

Crypto Awaz gives the dates as: Senate passage on 27 February 2026, National Assembly on 3 March, the President's signature on 4 March and publication on 5 March 2026. The Act replaced the Virtual Assets Ordinance of July 2025, which created PVARA. We have not confirmed these dates against the Act.

Licences and NOCs

PVARA's licensing page lists 11 licence categories, and its FAQ says a No Objection Certificate (NOC) is not a licence. Crypto Awaz reported in October 2026 that no exchange held a full licence and that Binance and HTX held NOCs. We could not verify that against a PVARA register. For the categories and what each requires, read our PVARA licensing guide.

Banks and the State Bank

Crypto Awaz says the State Bank stated on 30 May 2025 that it had never declared virtual assets illegal. It also says a State Bank circular letter of 14 April 2026 (BPRD Circular Letter No. 10 of 2026) replaced the 2018 instruction that told banks not to process crypto. Under the new letter, banks may open accounts for PVARA-licensed firms, and limited-purpose accounts for firms holding an NOC. According to the same summary, it says nothing about individuals' personal accounts. The State Bank's site blocked our automated check, so we could not read the circular ourselves.

Peer-to-peer trading

Crypto Awaz reports that occasional personal trades are not banned, and cites an April 2026 Lahore High Court Multan Bench bail order that treated receiving rupees and sending USDT as not fraud by itself. It describes those observations as tentative, and the line it draws is trading "by way of business". The practical danger is not criminal law but frozen bank accounts. We cover that in what to do if your bank account is blocked after a P2P trade.

Stablecoins

Holding stablecoins is allowed, according to Crypto Awaz. It also cites a regulation saying virtual assets may not be used as a means of payment for domestic commercial transactions unless the State Bank approves; we could not check that wording. Separately, PVARA's April 2026 advisory says stablecoin services for users in Pakistan need prior authorisation. We explain it in PVARA: stablecoin pilots need approval first.

Tax

There is no crypto-specific tax rate as far as we can find. Our summary is in crypto tax in Pakistan.

What to do

If you hold or trade for yourself, keep records and use accounts in your own name. If you trade for others or earn from it regularly, get advice from a Pakistani lawyer before you carry on, because the line between personal and business activity is where the rules bite.