Pakistan opens doors to global crypto firms with new licensing initiative

(Web Desk): Pakistan has officially invited international cryptocurrency exchanges and virtual asset service providers (VASPs) to apply for licences to operate within the country.

The move follows the formation of the Pakistan Virtual Asset Regulatory Authority (PVARA) under the recently enacted Virtual Assets Ordinance 2025.

The regulatory push aims to bring Pakistan’s booming digital asset sector in line with global standards set by the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank. With over 40 million estimated users and an annual trading volume exceeding $300 billion, Pakistan ranks among the most active frontier markets for cryptocurrency.

PVARA has been tasked with licensing, regulating, and supervising VASPs. Its oversight will cover anti-money laundering (AML), counter-terrorism financing (CTF), know-your-customer (KYC) protocols, and cybersecurity. In a call for expressions of interest (EoI), the authority encouraged regulated global firms to expand into the Pakistani market.

“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, Chairperson of PVARA and Minister of State for Crypto and Blockchain.

Licences will be available to firms already regulated in jurisdictions such as the US, UK, EU, UAE, or Singapore. Applicants must demonstrate robust compliance histories and submit details of existing licences, operational models, and plans for Pakistan. Submissions will be reviewed on a rolling basis.

This initiative builds on the efforts of the Pakistan Crypto Council (PCC), launched in March 2025 to drive national crypto adoption. The PCC is exploring bitcoin mining using surplus energy, has appointed Binance founder Changpeng Zhao as a strategic adviser, and plans to launch a state-run bitcoin reserve. It has also engaged with US-based firms, including World Liberty Financial.