Pakistan Launches Crypto Sandbox For Virtual Assets Regulation

On February 24, 2026, the Pakistan Virtual Assets Regulatory Authority (PVARA) launched a regulatory sandbox aimed at fostering innovation in the fintech sector. This sandbox allows startups to test their products, including tokenisation and stablecoins, in a controlled environment before applying for full licenses. This initiative comes as Pakistan ranked third globally on Chainalysis’s Crypto Adoption Index in 2025, with over $100 billion in transaction value, primarily in informal markets. The sandbox includes user caps, transaction limits, and mandatory custody controls, with a testing period of up to 18 months to ensure robust evaluation of the products. As noted by Data Darbar, “The logic is simple: fintech products can harm consumers, enable fraud, and move capital in ways that only become visible at scale.” This move aligns with global trends where over 50 countries have adopted similar frameworks to regulate virtual assets without stifling innovation.