By Staff Reporter
ISLAMABAD: Pakistan’s cryptocurrency regulator clarified that the initial clearances granted to global exchanges Binance and HTX are far from a full endorsement, describing them instead as the opening move in a tightly controlled, step-by-step framework aimed at harnessing the sector while mitigating risks.
The no-objection certificates, or NOCs, issued on Friday allow the platforms to register with the country’s anti-money laundering system, establish local subsidiaries and gear up for comprehensive license applications, Bilal Bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority, said in a televised video statement on Sunday. “This is not a blanket approval,” Saqib said. “It’s the first step under a risk-mitigated, phased, supervised entry framework.”
The move marks a tentative embrace of digital assets in a nation where cryptocurrency adoption has surged unchecked, ranking Pakistan among the world’s top three countries in the space with an estimated 30 million to 40 million users.
Saqib framed the clearances as the “first practical step” reflecting a “new mindset” and a “Pakistan-first” approach. Authorities have imposed controls in three key areas: combating money laundering and terrorism financing; ensuring transparency in ownership along with fitness and propriety checks; and enforcing timelines to pave the way for full licensing, he said. “It is mandatory for every platform to register on the AML [system] and have direct linkages with the financial monitoring unit,” Saqib said, adding that no platform would be allowed entry without “disclosures and verification.”
Licensing will only proceed for entities that “move forward in line with Pakistan’s law and with its oversight,” he said. Saqib noted that this phased model isn’t unique to Pakistan, with leading global financial centers adopting similar strategies for emerging industries. “We will first control this industry and then scale it.”
The regulator’s stance comes amid rapid grassroots uptake of crypto in Pakistan, where users have embraced the technology “without any regulatory framework, classroom and education,” Saqib said. “The good thing here is that this shows that our youth is world class. But are our systems world class? Are our regulations world class?” He questioned whether the state could afford to remain sidelined from a sector with such widespread involvement. “You cannot ignore innovation,” Saqib said, warning that failing to introduce “the right policies will weaken the country and make people unsafe.” Pakistan’s leadership is working to “narrow this gap,” he added, emphasising that countries taking early regulatory steps stand to attract capital. “Few countries have the opportunity that Pakistan has,” Saqib said. “We are not trying to promote crypto but to regulate it as people here have already adopted it.”
As the world’s fifth-most populous nation with tech-savvy youth and accelerating digital adoption, Pakistan could reap significant benefits if it provides a “legal, structured path” for the sector, he said. Without such a framework, talent risks fleeing abroad. “Otherwise, they will leave.”It’s the state’s duty to foster an enabling environment for new technologies through “smart regulation” that draws in global capital.
The framework targets preparation for the “industries of 2035 and 2025,” aiming to transform Pakistani youth from mere “consumers” into “builders and global experts.” The country must gear up for the future and build global trust “so that we are able to strengthen our sovereignty and economy through technology,” he said. Saqib told the international community that Pakistan is “open to business and welcoming innovation in the area of digital assets,” but only for entities that adhere to local rules, create youth opportunities and align with a “Pakistan-first approach.”
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