The Pakistan Virtual Assets Regulatory Authority (PVARA) on Friday notified licensing regulations and opened its licensing portal, completing the framework under which the country’s virtual asset service providers will be licensed and supervised.
The Regulations, issued under the Virtual Assets Act, 2026, establish 10 license categories, spanning exchange, custody, broker-dealer, advisory, lending and borrowing, derivatives, asset management, transfer and settlement, issuance, and mining-related services, each supported by activity-specific regulations setting out detailed conduct, prudential, technology and AML/CFT requirements.
Existing operators face a statutory deadline of Sept. 5. Under Section 70 of the Act, any person who was providing virtual asset services before the Act commenced must submit an NOC application by that date, or cease operations. Operating without submitting an application after that date is an offence.
“A generation of young Pakistanis built this market before the state was ready for it. Today the state catches up,” said Minister of State and PVARA Chairman Bilal bin Saqib. “For millions of Pakistanis, this means their assets are no longer held on just hope. Licensed Virtual Asset Service Providers must keep customer holdings separate from their own, cannot lend or pledge them without written consent, and cannot touch them if the platform fails. Those will be legal obligations now, not promises,” he said.
“To providers: this is an invitation. Get licensed, get banked, and build something here that lasts. To the young Pakistanis already in this market: you were ahead of the state. Now the state is with you,” he added.
The Regulations follow a public consultation that ran from June 11 to July 2 and included a public stakeholder webinar.
Licensing operates as a two-stage process. Applicants intending to incorporate in Pakistan will either go for a sandbox or first obtain a No-Objection Certificate under Section 19, then apply for a full license following incorporation. However, all the transitional persons must submit their NOC application by Sept. 5. All applicants can submit applications through the PVARA webpage.
Licensed providers will gain access to the formal banking system. State Bank of Pakistan Circular No. 10, issued on April 14, 2026, permits regulated entities to open accounts for PVARA-licensed virtual asset service providers, including segregated Client Money Accounts, replacing the prohibition that had been in place since 2018.
The framework has been built in less than six months. PVARA was constituted as a permanent statutory body by Act of Parliament in March 2026, secured banking access for licensed providers, and has now notified its licensing regulations following a full public consultation leading to promulgation of the licensing framework. Few jurisdictions have moved from a standing prohibition to an operational licensing regime inside that time.