Pakistan is formally embracing the digital currency revolution. The nation’s newly created cryptocurrency oversight agency is actively seeking applications from global exchanges and digital asset businesses to obtain the necessary licenses for operation within the country.
The Pakistan Virtual Asset Regulatory Authority (PVARA) has officially released a call for expressions of interest, inviting leading international Virtual Asset Service Providers (VASPs) to establish a presence in Pakistan. This initiative, as detailed in a statement from the Finance Ministry, follows the implementation of the Virtual Assets Ordinance 2025, which was enacted this past July.
Official data suggests Pakistan’s digital asset sector boasts over 40 million participants, with annual trading volumes surpassing $300 billion. This makes it one of the world’s largest cryptocurrency markets currently operating without formal regulation.
“This Expression of Interest is our invitation to the world’s most prominent VASPs to collaborate in creating a transparent and inclusive digital financial future for Pakistan,” declared Bilal bin Saqib, Chairman of PVARA and the Minister of State for Crypto and Blockchain.
The emerging regulatory structure is designed to align with globally recognized standards established by organizations such as the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank. PVARA’s role includes licensing and overseeing digital asset providers while actively enforcing measures against money laundering and the financing of terrorism, along with implementing robust cybersecurity protocols.
Eligibility for licensing is limited to companies already holding valid licenses from respected international regulatory bodies. This includes the U.S. Securities and Exchange Commission (SEC), the UK Financial Conduct Authority (FCA), the European Union’s VASP framework, the UAE Virtual Assets Regulatory Authority, and the Monetary Authority of Singapore (MAS).
Prospective applicants must comprehensively demonstrate adherence to Know Your Customer (KYC) protocols and provide detailed submissions. These submissions need to encompass company profiles, copies of existing licenses, descriptions of services offered, details of technology protocols, the value of assets managed, revenue figures, and a record of compliance. Furthermore, companies must present detailed business models specifically tailored for operations within Pakistan.
Applications are being accepted continuously via email submissions to the official PVARA address. The authority functions as an independent federal entity governed by a diverse board of stakeholders. This board includes representatives such as the Governor of the State Bank of Pakistan, the Chairman of the Securities and Exchange Commission, and the Chairman of the Federal Board of Revenue.
PVARA’s mandate goes beyond mere regulation. It seeks to protect consumers, prevent illicit financial activities, and promote innovation within the fintech space, encompassing remittances and tokenized assets. The authority intends to establish regulatory sandboxes to encourage the development of Shariah-compliant financial solutions.