Pakistan opens crypto licensing portal, sets Sept. 5 deadline for existing firms

Pakistan’s Virtual Assets Regulatory Authority has opened its licensing portal after notifying regulations for crypto exchanges and other virtual asset service providers operating in the country. Companies that were already offering virtual asset services on or before March 5 must submit a no-objection certificate (NOC) application by Sept. 5 or cease operations. PVARA said in a Saturday press release published by the Associated Press of Pakistan that operating after the deadline without filing an application will count as an offense. “The licensing window is officially open, creating a clear pathway for businesses to enter Pakistan’s regulated virtual asset market, with defined standards for consumer protection, governance, compliance and market integrity,” PVARA said on LinkedIn. The launch moves Pakistan’s crypto framework from legislation into enforcement. Domestic and overseas VASPs now have to enter the formal licensing process or stop serving the market. The framework covers exchanges, custody, broker-dealer services, lending, derivatives, asset management, token issuance and mining-related services. VASPs can apply for an NOC before incorporating locally, or they can enter a regulatory sandbox to test products under PVARA supervision before seeking a full license. Licensed providers will have to keep customer holdings separate from their own assets, and they cannot lend or pledge them without written consent. The framework also requires controls for governance, market conduct, cybersecurity, operational resilience, anti-money laundering and counter-terrorism financing. The rollout followed a public consultation held between June 11 and July 2. PVARA said the final framework offers two licensing routes: a sandbox path for firms testing new products and an NOC path for companies preparing to incorporate in Pakistan. PVARA has already issued NOCs to some firms, including Binance and HTX in December 2025. Those preliminary approvals allow the exchanges to set up local subsidiaries and prepare full license applications, a process that can now move forward after the regulations were notified. Pakistan’s parliament passed the Virtual Assets Act in March, establishing PVARA as the statutory regulator for the sector. The State Bank of Pakistan later allowed banks to provide accounts to licensed VASPs, including segregated client-money accounts.