Pakistan's Virtual Asset Authority Clarifies Regulations on Stablecoin Cross-Border Payments

Pakistan's Virtual Asset Regulatory Authority (PVARA) has issued a statement regarding recent announcements by financial institutions about pilot programs involving stablecoin cross-border payments and remittances. According to Foresight News, PVARA emphasized that under the 2026 Virtual Asset Act, providing virtual asset services within Pakistan, including issuance, transfer, custody, exchange, and related blockchain solutions, falls under its regulatory jurisdiction. Any agreements or pilot programs must receive prior authorization from PVARA. Plans announced without prior communication may face regulatory, reputational, and FATF compliance risks, and related activities may not be legally conducted. The authority advises stakeholders to engage with them early through processes such as regulatory sandboxes or No Objection Certificates (NOC).