Pakistan is now actively courting international cryptocurrency firms, offering a pathway for prominent exchanges and virtual asset service providers (VASPs) to secure licenses under a newly established federal regulatory system.
According to a report in Dawn, a local news publication, the Pakistan Virtual Asset Regulatory Authority (PVARA) issued a call on Saturday, inviting leading crypto businesses to formally express their interest (EoIs) in operating within the nation’s developing digital asset marketplace.
Bilal bin Saqib, the PVARA chair and minister of state for crypto and blockchain, stated, “This EoI serves as our invitation to the world’s foremost VASPs to collaborate in forging a transparent and inclusive digital financial ecosystem for Pakistan.”
To be eligible, companies must already possess licenses from recognized regulatory bodies, including the United States Securities and Exchange Commission (SEC), the United Kingdom Financial Conduct Authority, the European Union’s VASP framework, the United Arab Emirates’ Virtual Assets Regulatory Authority, and the Monetary Authority of Singapore.
Stringent Entry Requirements Set by Pakistan
Interested firms must submit detailed information including company profiles, existing licenses and the jurisdictions they cover, a description of proposed services (such as trading platforms, custody solutions, and payment systems), technological and security protocols, total assets under management, revenue figures, compliance history, and a tailored business plan specific to the Pakistani market.
The PVARA has indicated that this regulatory framework is designed to combat illicit financial activities while simultaneously fostering innovation in fintech, enabling remittance solutions, and promoting tokenization opportunities, which will include the development of Shariah-compliant products through regulatory sandbox environments.
Established under the Virtual Assets Ordinance 2025, the PVARA is responsible for the licensing, regulation, and oversight of VASPs, ensuring compliance with standards defined by global entities such as the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank.
Pakistan Holds 3rd Position Globally in Crypto Adoption
As previously reported, Pakistan has rapidly ascended to the third position in Chainalysis’ 2025 Global Crypto Adoption Index, moving up six places and solidifying its status as one of the world’s fastest-growing cryptocurrency markets.
In May, Pakistan revealed plans to create a state-managed Bitcoin Strategic Reserve. During the Bitcoin 2025 conference in Las Vegas, Bilal Bin Saqib highlighted that this initiative showcases Pakistan’s evolving and supportive regulatory stance toward cryptocurrencies.
Furthermore, the nation has allocated 2,000 megawatts of its surplus electricity to Bitcoin (BTC) mining and the development of AI centers, a project spearheaded by the Pakistan Crypto Council with backing from the Ministry of Finance.
However, in July, the IMF voiced concerns regarding Pakistan’s intention to utilize surplus electricity for crypto mining, rejecting a proposal that involved offering subsidized power to energy-intensive industries, including Bitcoin miners.