Pakistan Grants Binance and HTX Permission to Seek Local Crypto Licenses

TLDR

• Pakistan’s PVARA issued NOCs to Binance and HTX to apply for local crypto licenses.
• The NOCs ensure compliance with Anti-Money Laundering regulations and FATF policies.
• Binance and HTX will engage with SECP to set up local subsidiaries in Pakistan.
• PVARA views digital assets as an essential part of Pakistan’s future financial infrastructure.

Pakistan has granted approval for global cryptocurrency exchanges Binance and HTX to begin the process of seeking local operating licenses. This move comes as part of the country’s ongoing efforts to regulate the digital assets sector, with a focus on ensuring compliance with Anti-Money Laundering (AML) policies. The approval follows the issuance of No Objection Certificates (NOCs) by the Pakistan Virtual Assets Regulatory Authority (PVARA).

Binance and HTX are now permitted to establish local subsidiaries in Pakistan, a significant step toward formalizing their operations in the country. The companies can now work with the Securities and Exchange Commission of Pakistan (SECP) to complete the necessary procedures for full licensing. This action marks a critical milestone in Pakistan’s phased approach to regulating the cryptocurrency market.

Phased Approach to Crypto Regulation

Pakistan’s regulatory strategy for virtual assets has been outlined in phases, with the goal of creating a secure and compliant environment for digital asset services. The issuance of NOCs is part of this strategy, signaling a commitment to adhering to global standards, particularly those set by the Financial Action Task Force (FATF). The regulations are designed to ensure that cryptocurrency platforms meet stringent AML and Counter Financing of Terrorism (CFT) requirements.

The phased approach reflects Pakistan’s determination to establish strong governance mechanisms for the cryptocurrency sector. As the country seeks to integrate digital assets into its financial system, PVARA is working to ensure that all providers follow necessary compliance protocols. The NOCs granted to Binance and HTX show that the government is keen on regulating the industry rather than banning or restricting it.

Local Engagement and Licensing Process

Following the NOC issuance, both Binance and HTX are now authorized to engage with Pakistan’s SECP. This step will involve the establishment of local subsidiaries, which will be integral to their operations in the country. By setting up these entities, Binance and HTX aim to comply with the legal and regulatory framework that Pakistan is building for cryptocurrency exchanges.

Binance, one of the world’s largest cryptocurrency exchanges, expressed its eagerness to expand its presence in Pakistan. Binance CEO Richard Teng shared his excitement about the move, highlighting the company’s commitment to building a “safe, transparent, and future-ready digital asset ecosystem” in Pakistan. This development is expected to foster closer collaboration between Pakistan and leading global cryptocurrency platforms.

Vision for Pakistan’s Digital Asset Infrastructure

Bilal bin Saqib, Chairman of PVARA, emphasized the importance of digital assets and blockchain technology in shaping the future of Pakistan’s financial infrastructure. He explained that the country views Bitcoin, digital assets, and blockchain not merely as speculative assets but as the foundation for a new financial system. According to Saqib, these technologies could become essential infrastructure for Pakistan’s future economy.

This vision aligns with the country’s broader strategy to develop a robust and regulated digital economy. As Pakistan continues to explore the potential of blockchain and cryptocurrencies, the regulatory framework is being shaped to ensure both innovation and security.

The issuance of NOCs to Binance and HTX signals that Pakistan is moving closer to achieving its goals of financial innovation and regulatory compliance in the digital assets space. The country’s evolving approach promises to play a key role in integrating cryptocurrencies into mainstream financial systems in the region.

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