Pakistan Implements Comprehensive Licensing Framework for Virtual Asset Service Providers

ISLAMABAD: Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib announced on Saturday that new regulations governing virtual asset services have been notified and legalized, saying the move would protect digital investors from fraud.

Under the framework, virtual asset service providers will be licensed and supervised in Pakistan. The regulations, which are included in the Virtual Assets Act, 2026, establish ten license categories spanning exchange, custody, broker-dealer, advisory, lending and borrowing, derivatives, asset management, transfer and settlement, issuance, and mining-related services.

Each category sets out detailed conduct, prudential, technology and anti-money laundering (AML) and countering the financing of “terrorism” (CFT) requirements.

The move is part of Pakistan’s broader push to formalize oversight of cryptocurrencies and other digital assets, bringing a largely unregulated market under a framework aligned with global standards to enhance transparency, compliance, and investor protection.

“This means that for any businesses that want to provide virtual asset services in Pakistan, whether they are Pakistani or global, there is now a clear framework, a licensing process, and a legal front door,” Saqib said in a televised message.

The official said the regulations would help protect digital asset investors from fraud and bring the broader crypto market under the rule of law.

He noted that the crypto market had been operating outside the law in Pakistan, with millions of people involved in the trading of digital assets.

“But there were absolutely no regulations; they were non-existent,” he said. “And when such a large economic activity operates outside the law, the risk exists on both sides.”

In a separate press release issued by PVARA, the authority said existing virtual asset operators must apply for a no-objection certificate with the authority by Sept. 5.

“Under Section 70 of the Act, any person who was providing virtual asset services before the Act commenced must submit an NOC application by that date, or cease operations,” PVARA said. “Operating without submitting an application after that date is an offense.”

>PVARA said licensed virtual asset service providers must keep customer holdings separate from their own and cannot lend or pledge them without written consent. Those will be legal obligations now, not promises, the authority said.

>The authority said that licensed providers will gain access to the formal banking system.

>Pakistan has undertaken efforts in the past few months to regularize its crypto market. In May, Prime Minister Shehbaz Sharif directed authorities to fully implement the virtual asset regulatory framework and strengthen oversight of digital finance to boost investor confidence and support the digital economy. Pakistan is increasingly positioning digital finance, artificial intelligence and information technology as key drivers of economic growth, while seeking to formalize its large but previously unregulated crypto market, attract investment and foster innovation.

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