Pakistan opens crypto licensing portal

Pakistan has moved into the enforcement phase of its cryptocurrency regulatory framework, with the Pakistan Virtual Assets Regulatory Authority (PVARA) launching its licensing portal for exchanges and other virtual asset service providers.

Under the new framework, companies that were providing virtual asset services on or before March 5 must submit applications for a no-objection certificate (NOC) by Sept. 5, 2026. Firms that continue operating without submitting an application after the deadline could face enforcement action.

The new regime covers a broad range of crypto-related activities, including exchanges, custody services, brokerage, lending, derivatives, asset management, token issuance and certain mining-related services.

PVARA has established multiple routes for businesses seeking authorization. Companies can apply for an NOC while preparing to establish a local presence, while firms developing or testing new products can use a regulatory sandbox under the authority's supervision.

The rules also introduce requirements designed to strengthen consumer protection and market oversight. Licensed providers will have to segregate customer assets from company funds and will generally be prohibited from lending or pledging client assets without written permission. The framework additionally establishes requirements covering corporate governance, cybersecurity, operational resilience, market conduct and anti-money-laundering and counter-terrorist-financing controls.

The licensing rollout follows Pakistan's passage of the Virtual Assets Act in March, which established PVARA as the statutory regulator for the sector. The State Bank of Pakistan has also permitted banks to maintain accounts for licensed virtual asset providers, including segregated accounts for customer funds.

PVARA had previously issued preliminary NOCs to several international platforms, including Binance and HTX. The newly notified framework provides a formal pathway for those firms and other operators to move toward full licensing.

With the Sept. 5 deadline approaching, existing crypto businesses now face a clear choice: enter Pakistan's emerging regulatory system or stop providing covered services in the country. The move marks a significant shift from developing crypto policy to actively supervising the market.