Pakistan Opens Crypto Licensing Portal, Sets September 5 Deadline for Existing VASPs

Pakistan’s Virtual Assets Regulatory Authority (PVARA) announced that its licensing portal is now open, marking the transition of the country’s crypto framework from legislation to enforcement.

Deadline for Existing Providers

Virtual asset service providers (VASPs) that were operating on or before March 5 must submit an application for a no‑objection certificate (NOC) by September 5. Failure to do so will be treated as an offense and the provider must stop operating in Pakistan.

Regulatory Scope

The new framework covers a wide range of activities, including exchanges, custody, broker‑dealer services, lending, derivatives, asset management, token issuance and mining‑related services. Licensed providers will be required to keep customer holdings separate from their own assets and may not lend or pledge those holdings without written consent. The regulations also address governance, market conduct, cybersecurity, operational resilience, and anti‑money‑laundering and counter‑terrorism‑financing controls.

Licensing Pathways

PVARA offers two routes to licensing:

• A sandbox pathway for firms testing new products under regulator supervision before seeking a full license.
• An NOC pathway for companies preparing to incorporate locally.

Some firms, including Binance and HTX, received preliminary NOCs in December 2025, allowing them to establish local subsidiaries and move toward full licensing.

Legal and Banking Context

The Virtual Assets Act, passed by Pakistan’s parliament in March, created PVARA as the sector’s statutory regulator. The State Bank of Pakistan has also permitted banks to provide accounts to licensed VASPs, including segregated client‑money accounts.

Next Steps

Providers that miss the September 5 deadline will have to cease operations, while those that apply will undergo the licensing process to continue serving the Pakistani market under the new regulatory standards.