Pakistan has rapidly shifted its cryptocurrency policy from restrictions toward legalisation and formal regulation, with around 70 major global crypto exchanges reportedly seeking approval to operate in the country’s emerging digital asset market.
The development was disclosed by Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal Bin Saqib, who said the authority had received approximately 70 applications from major international exchanges interested in entering Pakistan.
The move highlights growing global interest in Pakistan’s virtual asset sector following the establishment of PVARA and the introduction of a licensing framework under the Virtual Assets Act, 2026.
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Key Takeaways
- Around 70 global crypto exchanges have reportedly applied to operate in Pakistan.
- Pakistan has moved from a restrictive approach toward formal regulation of virtual assets.
- PVARA is responsible for licensing and supervising virtual asset service providers.
- The licensing framework covers exchanges, custody, brokerage, advisory and other digital asset services.
- Applicants must comply with AML/CFT, cybersecurity, capital and governance requirements.
- Applications or No-Objection Certificates do not automatically mean a company has received a full licence.
Pakistan Moves Toward Formal Crypto Regulation
Pakistan’s digital asset policy has changed significantly in a short period, moving from uncertainty and restrictions toward a structured regulatory model.
The country has established PVARA as an independent authority responsible for overseeing virtual assets and virtual asset service providers.
The authority is tasked with ensuring that companies operating in the sector meet legal, financial, technological and compliance requirements before offering services to customers in Pakistan.
The shift is intended to bring crypto-related activities into a regulated environment while reducing risks linked to fraud, money laundering, terrorist financing and consumer exploitation.
PVARA Receives Applications from International Exchanges
Bilal Bin Saqib said around 70 applications had been received from major global crypto exchanges seeking licences to operate in Pakistan.
The applications reflect the growing interest of international platforms in Pakistan’s large and increasingly active digital asset user base.
However, the application process should not be confused with final regulatory approval. Companies must still complete the relevant stages of the licensing framework and meet PVARA’s requirements before receiving permission to operate fully.
The authority has previously emphasized that applicants may enter through different routes, including the regulatory sandbox, No-Objection Certificate process or formal VASP licensing pathway.
What the New Licensing Framework Covers
The Virtual Assets Act, 2026 and related regulations establish multiple categories of virtual asset services.
These include:
- Cryptocurrency exchange services
- Custody and safekeeping of digital assets
- Broker-dealer services
- Virtual asset advisory
- Lending and borrowing
- Digital asset derivatives
- Asset management and investment services
- Transfer and settlement services
- Asset-referenced token issuance
- Fiat-referenced token issuance
- Mining-related virtual asset services
The framework is designed to ensure that different types of digital asset businesses are regulated according to the risks and services they provide.
Requirements for Crypto Companies
Companies seeking approval must meet several regulatory conditions before obtaining a licence.
These requirements may include:
- Registration as a company in Pakistan
- Minimum paid-up capital
- Fit-and-proper checks for directors and senior management
- Know Your Customer and customer verification systems
- Anti-money laundering and counter-terrorism financing controls
- Cybersecurity safeguards
- Business continuity and disaster recovery plans
- Customer asset protection and segregation
- Transparent disclosures and reporting mechanisms
The requirements are intended to ensure that only credible and accountable firms operate in Pakistan’s virtual asset market.
NOC Is Not the Same as a Full Licence
A key distinction in Pakistan’s crypto framework is the difference between a No-Objection Certificate (NOC) and a full virtual asset service provider licence.
An NOC is part of the preliminary regulatory process that allows an applicant to proceed with certain compliance and incorporation requirements.
A company must still complete further regulatory steps before receiving a full licence. Therefore, an exchange that has applied for an NOC or entered the licensing pipeline should not automatically be described as fully licensed in Pakistan.
This distinction is important for customers and investors assessing whether a platform is legally authorised to provide services in the country.
Pakistan Also Exploring Stablecoins and Tokenisation
PVARA is also considering wider digital asset applications beyond cryptocurrency exchanges.
According to Bilal Bin Saqib, Pakistan is exploring possible tokenisation of government debt and Roshan Digital Accounts, while stablecoins could potentially be used for faster cross-border remittances.
Under one proposed model, overseas Pakistanis could send funds in the currency of their country of residence, with the amount converted into a stablecoin before being received by the beneficiary in Pakistan.
Such initiatives would require close coordination among PVARA, the State Bank of Pakistan, financial institutions and anti-money laundering authorities.
AML and FATF Compliance Remains a Major Challenge
PVARA officials have acknowledged that ensuring full compliance with anti-money laundering and counter-terrorist financing requirements remains one of the biggest challenges facing the sector.
Crypto platforms can operate across borders, making it difficult for regulators to maintain complete visibility over customer identities, transaction flows and beneficial ownership.
The Financial Monitoring Unit is expected to play a role in receiving suspicious transaction reports and supporting enforcement measures.
The regulatory framework therefore places strong emphasis on customer due diligence, transaction monitoring, recordkeeping and suspicious activity reporting.
Pakistan Moving Faster Than Several Other Markets
Bilal Bin Saqib said Pakistan had moved relatively quickly in establishing its virtual asset regulatory system.
He compared Pakistan’s progress with other jurisdictions, stating that Dubai took around 17 months, Singapore approximately 20 months and the United Kingdom nearly 46 months to develop comparable frameworks.
According to the PVARA chairman, Pakistan made the authority fully functional in roughly six months after the relevant legislation was passed.
The speed of development may help Pakistan attract international crypto companies, although the effectiveness of the system will ultimately depend on enforcement, transparency and regulatory consistency.
International Cooperation on Digital Assets
PVARA is also engaging with international jurisdictions to support cooperation on virtual asset regulation.
Saqib said Pakistan was negotiating memorandums of understanding with Kazakhstan and Kyrgyzstan to strengthen coordination in the digital asset sector.
International cooperation is important because crypto transactions often cross national borders and require shared standards for licensing, compliance, information exchange and enforcement.
What This Means for Pakistan’s Crypto Market
The arrival of major international exchanges could bring several potential benefits, including:
- Greater access to regulated crypto services
- Increased competition among digital asset platforms
- Improved consumer protection
- More transparency in transactions
- Potential investment in blockchain infrastructure
- Development of fintech and Web3 businesses
- New employment and technology opportunities
- Better integration with international digital finance markets
At the same time, regulators will need to ensure that rapid market growth does not increase risks related to fraud, speculative trading, money laundering and financial instability.
Frequently Asked Questions
How many global crypto exchanges are seeking licences in Pakistan?
Around 70 major global crypto exchanges have reportedly submitted applications or entered the licensing process, according to PVARA Chairman Bilal Bin Saqib.
What is PVARA?
PVARA stands for the Pakistan Virtual Assets Regulatory Authority. It is the country’s statutory regulator responsible for licensing, supervising and monitoring virtual asset service providers.
Does applying for a licence mean an exchange is already approved?
No. An application or NOC is part of the regulatory process and does not automatically mean that a company has received a full licence to operate.
What law regulates crypto businesses in Pakistan?
The sector is regulated under the Virtual Assets Act, 2026, along with related licensing regulations and activity-specific rules.
Which services require licensing?
The framework covers exchanges, custody, brokerage, advisory, lending, derivatives, asset management, token issuance, transfers and mining-related services.
Why are global exchanges interested in Pakistan?
Pakistan has a large potential digital asset user base, growing fintech activity and an emerging regulatory framework that provides a clearer path for international crypto businesses.
What are the biggest challenges for Pakistan’s crypto regulation?
Major challenges include AML/CFT compliance, transaction monitoring, consumer protection, cybersecurity, cross-border enforcement and preventing misuse of digital assets.
