The Pakistan Virtual Assets Regulatory Authority (PVARA) has issued a regulatory advisory requiring prior authorization for any virtual asset pilot projects, partnerships, or implementations involving users in Pakistan before they are launched or publicly announced.

The advisory comes after recent announcements by financial institutions regarding memoranda of understanding and pilot initiatives involving virtual assets, including stablecoin-based remittances and cross-border payment solutions, which were made without prior consultation with the regulator.

PVARA clarified that under the Virtual Assets Act, 2026, all services involving virtual assets—such as issuance, transfer, custody, exchange, or blockchain-based financial solutions—fall within its regulatory scope when offered to users in Pakistan. Any arrangement that enables such services must receive formal approval before proceeding.

The authority warned that announcing or initiating such projects without regulatory clearance may lead to compliance, legal, and reputational risks, including the possibility that the activity may not be permitted to proceed under the law. It also noted potential concerns related to international compliance frameworks, including FATF-related standards.

At the same time, PVARA said it remains open to innovation in the sector and encouraged institutions and companies to engage through formal channels such as the Regulatory Sandbox, No-Action Relief Letters, or the NOC process before launching any virtual asset-related initiatives.

The advisory effectively signals tighter oversight of Pakistan’s emerging digital asset space as regulators move to formalize and control the rapidly evolving fintech and blockchain ecosystem.