• Pakistan invites global crypto firms to apply for licenses under its new regulatory authority, PVARA.
• Only companies with existing licenses from top global regulators can operate in Pakistan’s crypto market.
• The country aims to control financial crime and boost innovation in its growing virtual asset sector.

Pakistan has formally opened its virtual asset market to global crypto firms. The Pakistan Virtual Assets Regulatory Authority (PVARA), established under the Virtual Assets Ordinance 2025, has begun accepting licensing applications from international firms. Only companies already regulated in jurisdictions like the US, UK, EU, UAE, or Singapore are eligible.

Authorities issued a call for Expressions of Interest on Saturday. The announcement targets Virtual Asset Service Providers (VASPs) with proven compliance records. The new framework marks the country’s first comprehensive step toward regulating its digital asset sector.

Pakistan’s Market Shows High Potential

Pakistan has an estimated 40 million crypto users. Annual trading volume reportedly exceeds $300 billion. In spite of this scale, the market has remained largely unregulated. Officials insist that the licensing framework plans to reduce financial crime and increase transparency.

The government wants to encourage safe innovation in the fintech space. In Pakistan, the cost of operation is relatively low, and there is an availability of skilled talent. The strategic location of the country is also an added attraction to global firms.

Strict Licensing Requirements in Place

To receive a license, firms must meet several conditions. Applicants must already hold licenses from major financial regulators. Required documents include company profiles, compliance records, and operational frameworks. The companies need to demonstrate high cybersecurity, anti-money laundering, and customer verification practices.

Applicants must also submit a clear business plan for Pakistan. Services must align with local laws, including compliance with Islamic finance principles. A committee of Islamic finance scholars will oversee this aspect.

The licensing regime includes a regulatory sandbox. This will support the development of new products, particularly those that comply with Shariah standards. PVARA aims to align Pakistan’s policies with global standards set by bodies like the FATF, IMF, and World Bank.

Governing Body Includes Top Institutions

PVARA’s board includes members from the State Bank of Pakistan, the Securities and Exchange Commission, and the Federal Board of Revenue. The authority has powers to regulate, license, and supervise all VASPs operating in the country. In June, Michael Saylor met with Pakistan officials to support national crypto plans, including Bitcoin reserves and a regulatory framework.

Applications will be reviewed on a rolling basis. When firms are ready, they can submit their applications via email. According to the officials, cybersecurity and consumer protection are an essential part of the new framework.

Earlier in 2025, Pakistan formed the Pakistan Crypto Council. It aims to support infrastructure, policy, and international collaboration in digital assets. The country has also explored Bitcoin mining and a national Bitcoin reserve.