Pakistan has opened its long-awaited virtual asset licensing regime, bringing cryptocurrency businesses under formal regulatory oversight and giving existing operators until Sept. 5 to apply for authorization.
The Pakistan Virtual Assets Regulatory Authority has activated its licensing portal after notifying regulations under the Virtual Assets Act of 2026. The move marks a significant shift toward a regulated digital asset market after years of uncertainty around crypto businesses operating in the country.
Existing Crypto Firms Face Deadline
Under Section 70 of the law, virtual asset service providers that were operating when the legislation took effect must submit an application for a No-Objection Certificate by Sept. 5, 2026.
Firms that fail to apply by the deadline must stop providing virtual asset services. Continuing operations without submitting an application after the deadline will constitute an offense.
The new framework covers 10 categories of virtual asset services, including:
- Cryptocurrency exchanges and custody services
- Broker-dealer and advisory services
- Lending, borrowing and derivatives
- Asset management, transfers and settlement
- Token issuance and mining-related activities
The rules also introduce requirements covering conduct, technology, prudential standards and anti-money laundering and counter-terrorism financing controls.
Banking Access Adds Momentum
The licensing regime also creates a formal path for regulated crypto businesses to access Pakistan’s banking system. Earlier measures from the State Bank of Pakistan allow regulated financial institutions to provide accounts to licensed virtual asset service providers, including segregated client money accounts.
The framework uses a two-stage path for businesses seeking to establish licensed operations in Pakistan. Companies can enter a regulatory sandbox or obtain an initial NOC before incorporating locally and applying for a full license.
For customers, the new rules aim to strengthen protections around digital assets. Licensed providers must separate customer holdings from their own assets and cannot lend or pledge customer assets without written consent.
Pakistan’s regulator has moved from legislation to operational licensing in less than six months. The government has presented the framework as a way to improve consumer protection while attracting investment and expanding opportunities linked to blockchain, stablecoins and tokenization.
