Pakistan’s new crypto regulator, PVARA, has invited global firms already licensed in major jurisdictions to apply for local licenses and serve its 40 million digital asset users. Applicants must meet capital, compliance, and Sharia law requirements as the country positions itself as a major frontier market.

Pakistan’s dedicated crypto regulator, the Pakistan Virtual Assets Regulatory Authority (PVARA), has begun courting large international crypto exchanges and other virtual asset service providers (VASPs) by inviting firms already licensed in major global jurisdictions to apply for local authorization. The move is part of a new federal framework under the 2025 Virtual Assets Ordinance and the subsequent Virtual Assets Act 2026, which give PVARA statutory powers to license, supervise and, if necessary, sanction digital asset firms operating in the country. With a domestic market estimated at over 40 million digital asset users, Pakistani authorities are pitching the country as a significant “frontier” venue for compliant crypto services, including trading, custody, payments and tokenization. Under the framework, only firms that already hold licenses or regulatory recognition from leading supervisors—such as the US SEC, UK FCA, EU VASP regimes, UAE’s VARA, or Singapore’s MAS—are eligible to apply. Applicants must demonstrate robust capital buffers, documented compliance programs aligned with Financial Action Task Force (FATF) standards, and adherence to Sharia-compliant product design and business practices, with some offerings expected to be trialed through regulatory sandboxes. The Virtual Assets Act 2026 reinforces this by empowering PVARA to issue, suspend or revoke licenses, create special “virtual asset zones” to attract blockchain businesses, and impose criminal penalties on unlicensed operators, including substantial fines and potential prison terms. Major exchanges such as Binance and HTX have already received preliminary No Objection Certificates (NOCs), signaling early interest in accessing Pakistan’s market under the new rules.

✨ AI-generated background, compiled from web sources — not editorial content.

More coverage

• Pakistan Law Gives PVARA Power To License Crypto Firms (coinmarketcap.com)
• Pakistan invites global crypto firms to apply for operating licenses (tradingview.com)
• Pakistan has passed the Virtual Assets Act 2026 - Binance (binance.com)
• Pakistan Virtual Assets Regulatory Authority - PVARA (pvara.gov.pk)
• Pakistan Virtual Assets Regulatory Authority: PVARA (pvara.gov.pk)

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