Pakistan opens lane for crypto exchanges to obtain local licenses

Pakistan has sent out invitations to cryptocurrency exchanges worldwide to apply for local licenses to operate in the country. According to reports, the Pakistan Virtual Asset Regulatory Authority (PVARA) has invited Expressions of Interest (EoI) from leading exchanges and Virtual Asset Service Providers (VASPs).

The country said it wants the global crypto exchanges to participate in the emerging digital economy of the country. Established under the Virtual Assets Ordinance 2025 (Ordinance No. VII of 2025), PVARA is charged with formalizing and regulating virtual assets in line with the international standards set by the Financial Action Task Force (FATF), IMF, and World Bank.

The ordinance, released on July 8 and published in the Gazette of Pakistan on July 9, allows the authority to license, regulate, and supervise the platforms, ensuring strong anti-money laundering (AML), counter-terrorism financing (CFT), and cybersecurity frameworks.

Pakistan wants partners for its digital economy

The finance ministry issued a statement on Saturday, highlighting the feat that it has achieved concerning the virtual asset market in Pakistan. According to the statement, the virtual asset market already has more than 40 million users with annual trading volumes estimated to be about $300 billion, making it one of the biggest untapped markets in the world.

“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. In the statement, it mentioned that eligibility will only be restricted to VASPs and crypto exchanges already licensed under recognized international regulations worldwide.

Some of these regulators include the United States Securities and Exchange Commission, the United Kingdom Financial Conduct Autho­rity, the European Union’s VASP framework, the United Arab Emirates’ Virtual Assets Regu­la­tory Authority, and the Mone­tary Authority of Singapore (MAS). Applicants are also expected to demonstrate that they are in compliance with AML, CFT, and know-your-customer (KYC) standards.

Strict guidelines to enter the program released

In the submissions, the platforms are expected to attach their full company profile, licensing details with jurisdiction and authorities, services offered, including trading, custody, technology, and security protocols, assets under management, revenue, and compliance history. Applicants are also expected to outline a proposal showing the kind of business model they will be operating in Pakistan.

In addition, EoIs must be submitted in PDF format to the specified email, with the subject line marked as “EoI VASP Lice­nsing” featuring the company name alongside it. The country also noted that it will approve applications on a rolling basis.

PVARA is an autonomous federal body governed by a multi-stakeholder board, including the governor of the State Bank of Pakistan, the chairman of the Securities and Exchange Commission of Pakistan, and the chairman of the Federal Board of Revenue. The body has been mandated to curb illicit finance, protect consumers, and unlock opportunities in fintech, remittances, and tokenized assets. In addition, it is also expected to enforce Shariah-compliant innovation using regulatory sandboxes.

According to previous reports, Pakistan has risen to occupy the third position in Chainalysis 2025 Global Crypto Adoption Index, climbing six spots. The country has emerged as one of the fastest-growing crypto markets as a result of the crypto-related efforts that have been in the works since the beginning of 2025. “Even under a ban and without a regulator, Pakistan hit #3 in crypto adoption. The goal is to create a blueprint for how digital assets should be embraced,” Bilal Bin Saqib said.

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