Pakistan launches digital asset licensing platform with September 5 compliance deadline
Virtual asset service providers currently operating must secure an NOC before Sept. 5 or shut down under Pakistan's newly implemented crypto regulations.
The Pakistan Virtual Assets Regulatory Authority (PVARA) has launched its online licensing platform following the notification of regulations that will govern cryptocurrency exchanges and other virtual asset service providers (VASPs) conducting business within the nation.
Firms that have been offering virtual asset services on or prior to March 5 are required to file an application for a no-objection certificate (NOC) no later than Sept. 5 or halt their operations, as stated on the PVARA licensing portal. Continuing to operate beyond the specified deadline without having filed an application will be considered a violation, PVARA announced in a press release issued on Saturday through the Associated Press of Pakistan.
The licensing window is officially open, creating a clear pathway for businesses to enter Pakistan's regulated virtual asset market, with defined standards for consumer protection, governance, compliance and market integrity.
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This launch transitions Pakistan's cryptocurrency regulatory framework from the legislative phase into active enforcement, mandating that both local and international VASPs participate in the official licensing procedure or discontinue their services to the Pakistani market.
New regulations clear path to full crypto licenses
The regulatory framework encompasses various activities such as exchanges, custody solutions, broker-dealer operations, lending services, derivatives trading, asset management, token issuance and mining-related offerings. VASPs have the option to pursue an NOC prior to establishing local incorporation or participate in a regulatory sandbox to evaluate products under PVARA's oversight before applying for a complete license.
Based on the press release, licensed service providers will be mandated to maintain customer assets separately from their own holdings and are prohibited from lending or pledging these assets without obtaining written authorization. The framework additionally mandates compliance with governance standards, market conduct rules, cybersecurity protocols, operational resilience measures and anti-money laundering and counter-terrorism financing safeguards.
The implementation came after a public consultation period that ran from June 11 through July 2. PVARA stated that the finalized framework offers two distinct routes to obtaining licensing. These include a sandbox pathway designed for companies testing innovative products and an NOC pathway intended for entities preparing to establish incorporation in Pakistan.
PVARA has previously granted NOCs to certain companies, including Binance and HTX in December 2025. These preliminary authorizations permit the exchanges to form local subsidiaries and develop full license applications, a procedure that can now move forward following the notification of the regulations.
The parliament of Pakistan enacted the Virtual Assets Act in March, designating PVARA as the official statutory regulator for the industry. Following this, the State Bank of Pakistan authorized banking institutions to offer accounts to licensed VASPs, which includes segregated client-money accounts.