Key facts
- Pakistan's Virtual Assets Regulatory Authority (PVARA) has set a September 5 deadline for crypto firms to register.
- Firms operating in Pakistan before March 5 must apply for a No Objection Certificate (NOC) by this date.
- The Virtual Assets Act 2026 establishes 11 categories of licenses for crypto services.
- Applicants must be registered companies in Pakistan and meet capital, personnel, and AML/KYC requirements.
- Licensed firms will have access to Pakistan's formal banking system.
- Binance and HTX have already secured certificates.
Pakistan's Virtual Assets Regulatory Authority (PVARA) has mandated that cryptocurrency firms operating in the country must register by September 5, 2024, or cease their operations. This deadline applies to companies that were already providing virtual asset services on or before March 5, 2024, the commencement date of the Virtual Assets Act 2026. Failure to submit an application for a No Objection Certificate by the deadline will be considered an offense.
The PVARA has launched a portal for these applications, as well as for full licenses and a regulatory sandbox. The Virtual Assets Act 2026 outlines 11 distinct license categories, encompassing services such as exchanges, custody, lending, derivatives, stablecoin issuance, and mining infrastructure. Chairman Bilal bin Saqib stated that the new framework aims to protect investors from fraud and integrate the market into the legal system, potentially facilitating export financing and remittances.
To obtain a license, applicants must first register a company in Pakistan under the Companies Act 2017, meet specific minimum paid-up capital requirements for their chosen category, and ensure their directors and key staff pass a fit and proper test. Additionally, robust anti-money laundering systems, cybersecurity measures, and business continuity plans are mandatory. Licensed firms are required to segregate customer holdings from their own assets and cannot lend or pledge them without explicit consent. This regulatory clarity is expected to grant licensed entities access to Pakistan's formal banking system, a significant hurdle for the sector previously.
Offshore exchanges that serve Pakistani customers must establish a local subsidiary to continue operations. Major exchanges like Binance and HTX have already secured certificates, indicating early adoption of the new regulations. PVARA, established by presidential ordinance in July 2025 and made permanent by the Act, oversees a market that ranked third globally in Chainalysis' 2025 crypto adoption index. Islamabad has also signaled further engagement with digital assets through plans for a strategic Bitcoin reserve and the establishment of a unit within its Federal Investigation Agency to combat the criminal use of digital assets.