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

Pakistan’s Virtual Assets Regulatory Authority (PVARA) announced that its licensing system is now live. Existing virtual asset service providers (VASPs) must apply for a no‑objection certificate (NOC) by Sept. 5, after which any firm that has not filed must stop operating. Operating without a licence after the deadline will be an offense under the Virtual Assets Act.

Scope of the New Rules

The framework covers ten categories of virtual‑asset activities, including exchanges, custody, lending, derivatives, asset management, token issuance and mining. Applicants can seek one or more licences depending on the services they intend to provide.

Requirements for Licence Holders

• Establish a Pakistani company under the Companies Act 2017 and meet paid‑up capital thresholds specific to each licence type.
• Fit‑and‑proper checks on directors and key personnel.
• Segregation of customer assets; client holdings cannot be lent or pledged without written consent.
• Robust anti‑money‑laundering (AML), counter‑terrorism financing (CTF), cybersecurity, transaction monitoring and business‑continuity controls.

Path to Full Licensing

Firms start with an NOC application, which grants preliminary approval and allows them to begin compliance work. After registering with the Financial Monitoring Unit, they must incorporate locally and then submit a full VASP licence application. A regulatory sandbox is also available for testing new products under limited conditions.

Banking Access for Licensed VASPs

Following a State Bank of Pakistan circular, regulated financial institutions may now open Client Money Accounts for PVARA‑licensed VASPs, keeping customer funds separate from operational accounts. Banks must verify licences and conduct AML/CTF due diligence.

Enforcement and Law‑Enforcement Coordination

The Federal Investigation Agency’s crypto unit, part of the National Command and Control Centre, will investigate money‑laundering, terrorism financing and other crimes involving virtual assets, while PVARA retains regulatory oversight.

International Exchanges in the Pipeline

Binance and HTX received preliminary approvals in December 2025 and can now move toward full licences under the new regime. Both exchanges have been registered with Pakistan’s AML system but are not yet authorised for unrestricted operations.