February 23, 2026
Karachi, Pakistan – The Pakistan Virtual Assets Regulatory Authority (PVARA) has officially announced the approval and launch of a regulatory sandbox for virtual assets, marking a major step toward fostering innovation in Pakistan’s digital asset ecosystem.
What is the PVARA Regulatory Sandbox?
According to PVARA, the sandbox provides a live, supervised environment where real-world use cases such as tokenisation, stablecoins, remittances, and on- and off-ramp infrastructure can be tested under regulatory oversight.
A regulatory sandbox, as defined by the Securities and Exchange Commission of Pakistan (SECP), is a tailored regulatory framework that allows companies to conduct limited-scale, live trials of innovative products, services, or business models in a controlled setting. These tests help assess the readiness of solutions for full-scale deployment while shaping a compatible and enabling regulatory environment.
Empowering Web3 Startups
PVARA’s sandbox is designed to give web3 startups a controlled environment to trial innovative digital asset solutions with relaxed regulatory requirements, allowing the authority to gather insights for developing new rules that balance innovation with consumer protection.
Next Steps
Official guidelines for the sandbox will be published soon on PVARA’s website, offering further details on participation, compliance requirements, and operational processes for interested companies.
This initiative positions Pakistan as a proactive player in the virtual asset space, providing startups with the tools to innovate while ensuring a secure and regulated environment.
