Pakistan’s Virtual Assets Regulatory Authority (PVARA) has launched its licensing portal as part of sweeping new regulations impacting the country’s digital asset industry. The move brings the sector under formal oversight and sets tight deadlines for firms currently operating in the market.
Transition rules and deadlines
Companies that provided virtual asset services to customers in Pakistan on or before March 5, 2026, when the Virtual Assets Act took effect, are now considered transitional entities. These firms have until September 5 to submit an application for a No Objection Certificate (NOC) or must halt their operations.
PVARA made clear that any business operating without filing an application after the deadline would be committing an offense, citing Section 70 of the Act. The newly opened portal allows for applications not only for the transitional NOC, but also for full licenses and participation in a regulatory sandbox designed to foster innovation within a secure framework.
Applicants are first required to register a local company under the Companies Act 2017 and obtain clearance from the Financial Monitoring Unit before moving forward. This procedure is expected to significantly reshape the way offshore exchanges and service providers interact with Pakistani clients.
ETH
SOL
BSC
ROBINHOOD
USDT
AAPLComprehensive licensing structure
The Virtual Assets Act 2026 introduces 11 categories of licenses, covering a broad range of activities. These include exchanges, custody services, broker-dealer operations, financial advisory, lending and borrowing, derivatives trading, discretionary asset management, transfer and settlement, mining infrastructure, and the issuance of both asset-backed and fiat-pegged tokens. Firms can apply for multiple licenses under the framework.
Bilal bin Saqib, chairman of PVARA, presented the regulations during a televised address, stating that the framework is designed to protect investors from fraud while bringing the digital asset market under the rule of law.
The regulation, according to Saqib, does more than simply supervise exchanges. He referenced the potential of stablecoins and tokenization to open up export financing, enable remittances, and broaden access to lending for small businesses.
As the sector braces for change, platforms are highlighting the growing importance of transparency and technical efficiency. While traditional markets rely on complex brokers, a major shift is now taking place: Wall Street is moving to Web3. Investors are increasingly adopting services like 1stepSwap, which enable the direct holding of shares in major U.S. companies, gold, and silver within crypto wallets. By tokenizing real-world assets and sourcing the best market prices automatically, such platforms aim to streamline transactions and remove intermediary barriers.
Regulatory requirements and market impact
Firms seeking a license must meet stringent requirements. This includes minimum paid-up capital specific to the type of license sought, a management team that passes a fit and proper test, robust anti-money laundering systems for customer verification, and transaction monitoring. Companies must also implement cybersecurity protocols and maintain a business continuity plan.
Licensed entities are obligated to keep customer holdings segregated from company assets, and cannot lend or pledge these funds without explicit written consent. PVARA emphasized that these are now binding legal requirements.
In exchange for compliance, license holders gain access to the formal banking system, addressing an obstacle that has hampered Pakistan’s digital asset industry since banks were barred from serving crypto firms eight years ago. The change is significant for exchanges like Binance and HTX, which already possess NOCs, and sets a new standard for international platforms targeting Pakistani users.
After receiving the NOC, firms must register with the Financial Monitoring Unit, establish a local subsidiary, and formally apply for a license. This structure means offshore service providers need a formally registered company in Pakistan to serve local users.
PVARA was established in July 2025 by presidential ordinance, a temporary emergency measure, and was later made permanent under this year’s law. The authority now oversees a market ranked third globally for crypto adoption by Chainalysis in 2025. Islamabad has signaled its intent to deepen engagement with digital assets, unveiling plans for a strategic Bitcoin reserve and setting up a special investigative unit within the Federal Investigation Agency to pursue criminal misuse of cryptocurrencies.
