Pakistan has officially opened its new virtual asset licensing regime, giving existing cryptocurrency businesses until September 5, 2026, to apply for regulatory approval or stop operating in the country.
The licensing portal was launched by the Pakistan Virtual Assets Regulatory Authority (PVARA) as the country moves to bring its growing digital-asset sector under formal government supervision.
Under Pakistan’s Virtual Assets Act 2026, companies that were already providing virtual-asset services when the law came into effect must submit an application for a No-Objection Certificate (NOC) by September 5.
Firms that fail to submit an application by the deadline must cease operations. Continuing to operate without applying after the deadline will constitute an offence under the law.
The requirement applies to what PVARA calls “transitional persons”—businesses that were operating on or before March 5, 2026.
The new system introduces licensing categories covering a broad range of digital-asset activities, including crypto exchanges, custody services, broker-dealers, advisory services, lending and borrowing, derivatives, asset management, transfers and settlement, token issuance and mining-related services.
The licensing process is designed as a two-stage system. Eligible companies can first obtain an NOC and then complete local incorporation and regulatory requirements before applying for a full licence. Businesses can also enter PVARA’s regulatory sandbox to test innovative virtual-asset products under supervision.
One of the major changes under the new framework is that licensed virtual-asset service providers can gain access to Pakistan’s formal banking system.
The State Bank of Pakistan issued a circular in April allowing regulated financial institutions to provide accounts to PVARA-licensed virtual-asset businesses, including segregated accounts for customer funds.
PVARA Chairman and Minister of State Bilal Bin Saqib said the framework is intended to provide stronger legal protections for customer assets, including requirements for licensed platforms to keep customer holdings separate from their own assets.
Pakistan’s regulatory framework has been developed in less than six months, moving from legislation to operational licensing in a relatively short period. PVARA was established as a permanent statutory authority in March 2026, followed by banking reforms in April and the final licensing regulations in August.
The move represents a significant shift in Pakistan’s approach to cryptocurrency—from a largely unregulated market toward a system where crypto businesses must meet government requirements to continue operating.
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