By Staff Reporter
ISLAMABAD: Pakistan is throwing open its doors to the global cryptocurrency industry, inviting major exchanges and virtual asset service providers (VASPs) to apply for licenses in a bid to formalise its burgeoning digital economy.
The Pakistan Virtual Asset Regulatory Authority (PVARA), a newly established federal body, issued a call for expressions of interest (EoI) on Saturday, signaling a sharp pivot from the country’s previous stance on virtual currencies, according to a statement from the Finance Division.
The move follows the promulgation of an ordinance on July 8, 2025, which empowers PVARA to license, regulate, and supervise VASPs. The ordinance also mandates robust anti-money laundering (AML), counter-terrorism financing (CFT), and cybersecurity measures, while encouraging Shariah-compliant innovation through regulatory sandboxes.
“This EoI is our invitation to the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan,” said Bilal bin Saqib, chairman of PVARA and Minister of State for Crypto and Blockchain. The initiative aims to align Pakistan’s virtual assets framework with international standards set by the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank, the Finance Division said.
Pakistan’s virtual assets market is no small prize. With over 40 million users and an estimated annual trading volume exceeding $300 billion, the country represents “one of the world’s most dynamic frontier opportunities,” according to the Finance Division. The scale of engagement, particularly among Pakistan’s tech-savvy youth, has pushed policymakers to rethink a 2018 ban on virtual currencies imposed by the State Bank of Pakistan (SBP).
Last month, PVARA’s inaugural board meeting laid out a roadmap to reverse the SBP’s prohibition while prioritizing AI-driven risk management, licensing, and regulatory frameworks. The shift reflects a broader ambition to harness blockchain and digital assets for financial inclusion, remittances, and tokenized assets, while safeguarding against illicit finance.
The EoI targets established VASPs and exchanges already operating in at least one international jurisdiction, such as those licensed under the US Securities and Exchange Commission (SEC), the UK’s Financial Conduct Authority (FCA), the European Union’s VASP regime, the UAE’s Virtual Assets Regulatory Authority (VARA), or Singapore’s Monetary Authority (MAS). Applicants must demonstrate a track record of AML, CFT, and know-your-customer (KYC) compliance.
Submissions must include a company profile, licensing details (including jurisdictions, authorities, and license numbers/dates), an operational overview detailing services like trading and custody, technology and security measures, assets under management (AUM), revenue, compliance history, and proposed business models for the Pakistan market. Companies are required to email PDF submissions to [email protected] with the subject line “EoI VASP Licensing – [Company Name].” The process is rolling, with no fixed deadline, and inquiries can be directed to PVARA’s headquarters in Islamabad.
Pakistan’s embrace of virtual assets comes as the country seeks to capitalize on its youthful, digitally engaged population. Speaking at a session last month, Federal Minister for Finance and Revenue Muhammad Aurangzeb emphasized the need to integrate blockchain and digital assets into the nation’s economic framework. “With millions of Pakistanis, especially youth, already engaged in blockchain and digital assets, the country must embrace this shift as part of its new economy by fostering financial inclusion, transparency, and efficiency, while ensuring a balanced regulatory framework,” he said.
The push aligns with Pakistan’s broader economic goals, including boosting remittances, a lifeline for the cash-strapped nation, and fostering fintech innovation. By creating a regulated environment for virtual assets, PVARA aims to attract global players while addressing risks like money laundering and fraud, which have long been concerns for regulators worldwide.
Pakistan’s move to regulate virtual assets follows years of informal crypto activity, often conducted through peer-to-peer platforms and unregulated exchanges. The 2018 SBP ban had pushed much of this activity underground, but growing adoption and global regulatory developments have prompted a rethink. The FATF’s increasing focus on virtual asset oversight, coupled with Pakistan’s efforts to exit the watchdog’s gray list, has added urgency to the establishment of PVARA and its licensing regime.
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