Pakistan opens crypto licensing portal, firms must apply by September 5

Pakistan just went from crypto gray zone to full regulatory buildout. The Pakistan Virtual Assets Regulatory Authority, known as PVARA, launched its licensing portal on August 22, giving virtual asset service providers operating in the country a tight window to get compliant or get out.

Existing crypto firms that were active before March 5, when the Virtual Assets Act took effect for transitional purposes, must submit a No-Objection Certificate application by September 5. That’s roughly two weeks. Miss the deadline, and continued operations become a criminal offense.

What the new framework actually requires

The licensing system covers 10 distinct categories of virtual asset activities. Different business models, from exchanges to custody providers, will fall under different regulatory buckets with tailored requirements.

Among the more notable provisions: licensed providers must segregate client assets from their own. They’re also prohibited from lending or staking customer funds without getting explicit consent first.

The framework also imposes standards around governance, prudential requirements, and cybersecurity practices.

PVARA finalized the regulations on August 21, one day before the portal went live. The authority itself was originally established through a July 2025 ordinance and became a permanent regulatory body under the Virtual Assets Act, 2026.

A two-track system for old and new players

The portal isn’t just for existing operators scrambling to comply. It also accepts applications for full VASP licenses and a regulatory sandbox, opening the door for new market entrants who want to build under Pakistan’s framework from day one.

For transitional operators, those who were already running crypto services before the law kicked in, the calculus is straightforward. Apply by September 5, and you can keep operating while PVARA reviews your application. But PVARA reserves the right to impose restrictions during that review period.

Anyone who doesn’t apply faces mandatory cessation of all relevant services. The law treats continued unlicensed operation as an offense.

Some platforms got ahead of the curve. Binance and HTX reportedly obtained earlier No-Objection Certificates back in December 2025, positioning themselves as among the first international platforms to secure preliminary regulatory approval in the country.

Why Pakistan is moving now

PVARA Chairman Bilal bin Saqib framed the licensing regime as a fundamental shift. He characterized it as a transformation from an unregulated market to a structured, consumer-protective system designed to bring virtual assets into Pakistan’s formal economy.

This represents a significant transformation from an unregulated market to a structured, consumer-protective regime aiming to integrate virtual assets into Pakistan’s formal economy.

One of the key benefits for licensed providers is access to Pakistan’s formal banking sector. Regulatory clarity could change that dynamic, making it easier for platforms to process fiat on-ramps and off-ramps.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.