S No.

Page No.

CHAPTER 1 - PRELIMINARY

1

Short title, extent, commencement.

1

2

Scope of application

1

3

Definitions

2

4

Extraterritorial application

7

5

Relationship with other law

7

CHAPTER 2 - PAKISTAN VIRTUAL ASSETS REGULATORY AUTHORITY

1

Establishment of the Authority

7

2

Composition of Authority

8

3

Procedures of the Authority

8

4

objectives, functions and powers of the Authority

8

5

Delegation of powers

10

6

Appointment and Functions of Chairperson

10

7

Appointment and Functions of Managing Director

11

8

Appointment of Officers, Staff, Consultants, Advisors and other
personnel

11

9

Pakistan Virtual Asset Regulatory Authority Fund

12

10

Code of conduct

14

11

Inter-agency cooperation and information-sharing

14

CHAPTER 3 - LICENSING OF VIRTUAL ASSET SERVICE PROVIDERS AND ISSUANCE OF VIRTUAL ASSETS

1

Categories of virtual asset services

15

2

Application for License

15

3

Fit-and-proper criteria

15

4

Grant, refusal and terms of license

16

5

Ongoing obligations of licensees

22

6

Variation, suspension and revocation of license

23

CHAPTER 4 - PRUDENTIAL REQUIREMENTS, SAFEGUARDING AND CUSTODY

1

Segregation of customer assets

17

2

Minimum financial resource requirements

18

3

Custody standards and key-management controls

18

4

Proof-of-reserves and audit obligations.

18

5

Reserve custodians

18

6

Customer safeguard or compensation mechanism

18

CHAPTER 5 - FIAT-REFERENCED AND ASSET.REFERENCED TOKENS

1

Initial virtual Asset offering

19

2

Issuance Requirements for Fiat-Referenced Tokens

19

3

Issuance Requirements for Asset-Referenced Token

19

4

Significant issuers

20

CHAPTER 6 - CYBERSECURITY, SANDBOX AND INNOVATION

1

Cybersecurity and operational resilience

20

2

Regulatory sandbox

20

3

Oversight of blockchain technology adoption

21

4

Regulation of Virtual Asset Mining Activities

21

5

Establishment of Strategic Digital Wallet Company

21

6

Data localization framework

21

7

Data segregation and protection of sensitive information

21

CHAPTER - MARKET CONDUCT, CONSUMER PROTECTION

1

Duty of integrity and fair dealing

22

2

Obligations of issuers of Virtual Assels

22

3

Marketing and conduct restrictions

23

4

Conflict-of-interest management

23

5

Complaint-handling and dispute resolution

23

CHAPTER 8 - ANTI.MONEY LAUNDERING, COUNTERING OF TERRORISM FINANCING AND
COUNTERING OF PROLIFERATION FINANCING

1

Application of Anti-Money Laundering Act, 2010

23

2

Travel rule and record-keeping obrigations

24

3

Real-time data access and reporting

24

4

Data Privacy obligations for Licensed entities

24

CHAPTER 9 - PROHIBITIONS

1

Prohibition of unlicensed Virtual Asset services

24

2

Prohibition on Initial Virtual Asset Offerings

25

3

Prohibition of market manipulation and insider trading

25

4

Prohibition on Algorithmic tokens

25

CHAPTER 10 - ENFORCEMENT, OFFENCES AND PENALTIES

1

Criminal offence

26

2

Liability of officers of bodies corporate

26

3

Power t-o Investigate

26

4

Powers of Authorized Office

26

5

Prosecution of offences

26

6

Administrative sanction

27

7

Emergency intervention powers

28

8

Power to prevent access to unlicensed virtual asset services

28

CHAPTER 11 - APPEALS

1

Establishment of the virtual assets appellate tribunal

28

2

Jurisdiction

29

3

Appeal

29

4

Appeal to Supreme Court

29

CHAPTER 12 - MISCELLANEOUS

1

Tax Compliance

29

2

Power to make Rules

30

3

Powers to make regulations.

30

4

Officers to be public Servants

30

5

Transitional provisions

30

6

Power of the Federal Government to issue policy directive

30

7

Annual and special reports of the Authority

30

8

Removal of difficulties

30

9

Savings

31

SCHEDULE I (See section 18) CATEGORIES OF VIRTUAL ASSET SERVICES

32 to 35

STATEMENT OF OBJECTS AND REASONS

36