Pakistan Opens Crypto Licensing to International Exchanges

Pakistan's newly established crypto regulator has invited international exchanges and digital asset service providers to apply for operating licenses, marking a significant step toward formalizing the country's substantial cryptocurrency market.

The Pakistan Virtual Asset Regulatory Authority (PVARA) issued expressions of interest for global Virtual Asset Service Providers seeking to operate in the country, according to a finance ministry statement. The authority was established under the Virtual Assets Ordinance 2025, which was promulgated in July.

Pakistan's virtual asset market encompasses more than 40 million users with estimated annual trading volumes exceeding $300 billion, making it one of the world's largest unregulated crypto markets, according to government figures.

"This EoI is our invitation to the world's leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan," said Bilal bin Saqib, PVARA chairman and minister of state for crypto and blockchain.

The regulatory framework aligns with international standards established by the Financial Action Task Force, International Monetary Fund, and World Bank. PVARA's mandate includes licensing and supervising digital asset providers while implementing anti-money laundering, counter-terrorism financing, and cybersecurity requirements.

Eligibility is restricted to companies already licensed by recognized international regulators, including the U.S. Securities and Exchange Commission, UK Financial Conduct Authority, European Union VASP framework, UAE Virtual Assets Regulatory Authority, and Monetary Authority of Singapore.

Applicants must demonstrate compliance with know-your-customer standards and provide detailed submissions covering company profiles, existing licenses, services offered, technology protocols, assets under management, revenue figures, and compliance history. Companies must also outline proposed business models for Pakistani operations.

Applications are accepted on a rolling basis through email submissions to PVARA's official address. The authority operates as an autonomous federal body with a multi-stakeholder board including the State Bank of Pakistan governor, Securities and Exchange Commission chairman, and Federal Board of Revenue chairman.

PVARA's objectives extend beyond basic regulation to include consumer protection, illicit finance prevention, and fostering innovation in fintech, remittances, and tokenized assets. The authority plans to establish regulatory sandboxes to encourage Shariah-compliant financial innovation.

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