Pakistan has introduced a formal licensing system for virtual asset businesses, bringing cryptocurrency and other digital-asset services under regulatory oversight.
The Pakistan Virtual Assets Regulatory Authority (PVARA) has opened an online licensing portal, while existing virtual asset operators must apply for a No-Objection Certificate by September 5, 2026.
New Licences Cover Major Crypto Services
The framework introduces 10 licensing categories, covering activities such as crypto exchanges, custody, brokerage, advisory services, lending, derivatives, asset management, transfers, token issuance and mining.
The rules also require stronger safeguards, including separation of customer assets from company funds and compliance with anti-money-laundering and counter-terror financing requirements.
Banking Access Opens For Licensed Firms
Licensed virtual asset service providers will also have greater access to Pakistan’s formal banking system. This could make it easier for regulated businesses to manage payments and customer funds.
The government is also exploring blockchain and tokenisation for areas including remittances, exports, trade finance and SME funding.
Ten Categories Of Virtual Asset Licences
The licensing framework covers a wide range of activities within the digital-asset industry.
These include:
- Virtual asset exchanges
- Custody services
- Broker-dealer services
- Advisory services
- Lending and borrowing
- Derivatives
- Asset management
- Transfer and settlement services
- Virtual asset issuance
- Mining-related services
Each category comes with its own requirements covering business conduct, financial safeguards, technology standards and anti-money-laundering and counter-terrorism-financing obligations.
This approach allows regulators to distinguish between businesses rather than applying identical requirements to every company operating in the sector.
A New Direction For Pakistan’s Digital Economy
The licensing framework could give Pakistan’s crypto industry greater certainty while improving consumer protection and financial transparency.
Its long-term success, however, will depend on effective enforcement, regulatory capacity and creating enough space for responsible innovation.