Pakistan has launched a live regulatory sandbox for testing digital assets including tokenization and stablecoins. The Pakistan Virtual Assets Regulatory Authority stated the framework allows real-world use case testing under supervision, with full guidelines for issuers coming soon. This move advances the country’s plan to establish clear crypto regulations, guided by advisor Changpeng Zhao.
Pakistan has officially launched a crypto testing framework for regulated digital assets. The Pakistan Virtual Assets Regulatory Authority (PVARA) stated it will soon announce full guidelines for potential issuers wishing to participate in this ‘sandbox.’
“The Sandbox creates a live, supervised environment for testing real-world use cases, including tokenization, stablecoins, remittances, and on- and off-ramp infrastructure under regulatory oversight,” the authority stated. The country first announced the sandbox in mid-2025 to evaluate the sector before granting full approval.
Pakistan’s regulatory progress follows its appointment of Binance founder Changpeng Zhao (CZ) as a strategic advisor to the Pakistan Crypto Council. The country ranks high in global crypto adoption, placing third worldwide in 2025 according to Chainalysis data.
In January, PVARA announced a partnership with World Liberty Financial (WLFI) to explore stablecoins for cross-border transactions. CZ has expressed optimism about the country’s regulatory pace, stating “If we keep moving at this speed in five years, Pakistan will be one of the crypto leaders in the world.”
The regulator has already begun issuing No Objection Certificates as a first step toward full licensing. The sandbox aims to identify compliance and anti-money laundering weaknesses before a full regulatory framework is rolled out.
