Quick Breakdown:
- Pakistan has invited global cryptocurrency exchanges and VASPs to apply for licenses under its new Virtual Assets Regulatory Authority.
- Applicants must hold licenses in major jurisdictions, with strong AML, CTF, and KYC compliance track records.
- The initiative aims to integrate Pakistan’s $300B crypto market with global standards while fostering Shariah-compliant fintech innovation.
Pakistan has invited international cryptocurrency exchanges and other virtual asset service providers (VASPs) to apply for licenses to operate in the country, marking its first major step toward regulating a digital asset market authorities estimate serves more than 40 million users with an annual trading volume of roughly $300 billion.
Pakistan’s crypto regulator invites licensed crypto companies to serve 40 million local users
The Pakistan Virtual Assets Regulatory Authority (PVARA), established in July, has invited global cryptocurrency companies to apply for local licenses in order to serve Pakistan’s 40… pic.twitter.com/ztdvNRt1Tk
— ThuanCapitalGlobal (@ThuanGlobal) September 15, 2025
The initiative is being spearheaded by the newly established Pakistan Virtual Assets Regulatory Authority (PVARA), created under the Virtual Assets Ordinance 2025. Officials said the licensing program is designed to align the country’s crypto sector with global standards on anti-money laundering (AML), counter-terrorism financing (CTF), and investor protection, while also encouraging fintech innovation.
Licensing requirements and global standards
In its call for expressions of interest, PVARA outlined strict requirements for applicants. Companies must already be licensed in at least one major jurisdiction and demonstrate a track record of strong compliance with AML, CTF, and know-your-customer (KYC) regulations. Submissions must include company profiles, licensing credentials, operational details, compliance histories, and business models tailored for the Pakistani market.
The authority emphasized that licensing will be handled through a rolling application process submitted via email, with oversight provided by a board that includes senior representatives from the State Bank of Pakistan, the Securities and Exchange Commission, and the Federal Board of Revenue. Regulatory sandboxes will also be introduced to support Shariah-compliant innovation and local adaptation of blockchain-based services.
Toward a formal digital asset economy
Government officials described the licensing initiative as a “pivotal step” toward integrating Pakistan’s growing digital economy with global financial frameworks. By setting up a transparent and regulated environment, authorities aim to attract international players, strengthen consumer protection, and reduce risks linked to illicit finance.
“This is an invitation for leading VASPs to help build a transparent and inclusive digital financial future for Pakistan,”
said Bilal bin Saqib, chairman of PVARA and minister of state for crypto and blockchain.
The move followed Pakistan’s bold step toward crypto adoption, as the country secured the support of Michael Saylor, executive chair of Strategy (formerly MicroStrategy) and the world’s largest corporate holder of Bitcoin.
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