ISLAMABAD: Pakistan is developing a formal regulatory framework for digital assets that could support new models of real estate tokenisation. The move comes as the country introduces rules for virtual assets, blockchain-based services, and digital financial products.
The Virtual Assets Act, 2026 provides a legal framework for virtual asset activities in Pakistan. It also establishes the Pakistan Virtual Assets Regulatory Authority (PVARA) to oversee and regulate covered activities in the sector.
The framework has potential relevance for real estate tokenisation. In this model, digital tokens can represent certain ownership rights, claims, or economic interests connected to an underlying asset. The law includes asset-referenced tokens within its definition of virtual assets.
However, the framework does not mean that every tokenised property project is automatically approved. Real estate businesses using such structures would still need to comply with applicable laws and regulatory requirements.
Pakistan has been exploring asset tokenisation as part of its broader digital finance agenda. A government-led event in Karachi in July 2025 brought together officials, financial experts, and technology professionals to discuss blockchain applications, tokenisation, and the future regulatory framework.
PVARA has also outlined requirements for virtual asset service providers. Businesses offering regulated services may need licensing and must meet requirements related to customer protection, cybersecurity, governance, anti-money laundering controls, and financial monitoring.
The regulator has advised businesses interested in tokenisation and blockchain-based solutions to engage through the appropriate regulatory channels. Required approvals must be obtained before offering services that fall under regulated activities.
For Pakistan’s real estate sector, tokenisation could eventually provide new ways to structure and manage certain property-related interests digitally. However, its practical use will depend on regulatory approvals, property ownership rules, documentation, investor safeguards, and coordination between relevant authorities.
Potential investors should therefore examine tokenised property offers carefully. They should verify the underlying property, ownership documents, project approvals, and regulatory status before committing funds. A digital token by itself should not be treated as proof of property ownership or government approval.
