Pakistan has officially launched its virtual asset licensing portal, marking a significant shift from an unregulated market to a structured regulatory framework. The Pakistan Virtual Assets Regulatory Authority (PVARA) opened the portal on August 22 following the finalization of regulations on August 21.
Under the new rules, existing crypto firms that were active prior to March 5 must submit a No-Objection Certificate application by September 5. Operators who fail to meet this deadline face a mandatory cessation of services, with continued unlicensed operations treated as a criminal offense. Firms that submit their applications on time are permitted to continue operating while PVARA reviews their status, though the authority retains the right to impose restrictions during the review period.
International platforms Binance and HTX previously obtained preliminary No-Objection Certificates in December 2025.
Regulatory Requirements and Two-Track System
The new framework spans 10 distinct categories of virtual asset activities, tailoring requirements to different business models such as exchanges and custody providers. Notable provisions mandate that licensed providers must segregate client assets from their own funds and prohibit them from lending or staking customer funds without explicit prior consent. The framework also enforces strict standards regarding governance, prudential requirements, and cybersecurity practices.
The portal accommodates a two-track system, serving both transitional operators and new market entrants. In addition to transitional applications, the portal accepts submissions for full Virtual Asset Service Provider (VASP) licenses and a regulatory sandbox for new participants.
Integration into the Formal Economy
PVARA Chairman Bilal bin Saqib described the licensing regime as a fundamental transformation aimed at building a consumer-protective system that integrates virtual assets into Pakistan's formal economy. Among the primary advantages for compliant providers is potential access to Pakistan's formal banking sector, which could simplify the processing of fiat on-ramps and off-ramps.
PVARA was originally established through a July 2025 ordinance and transitioned into a permanent regulatory body under the Virtual Assets Act, 2026.
