Pakistan’s Virtual Assets Regulatory Authority has activated its online licensing portal and begun enforcing regulations for virtual asset service providers. The step follows the notification of licensing rules under the Virtual Assets Act 2026, moving the country’s digital asset framework from legislation into active supervision.

Companies that offered virtual asset services on or before March 5 must submit applications for a no-objection certificate by September 5. Those that continue operating after the deadline without filing will commit an offense under the law. The requirement applies to both domestic and overseas firms serving the Pakistani market.

Scope of Regulated Activities

The framework creates licence categories for a wide range of services. These include advisory work, broker-dealer operations, custody, exchanges, lending and borrowing, derivatives, virtual asset management, transfer and settlement, token issuance, and mining or validation services. Applicants may request one or more categories according to their planned activities.

Exchange licences cover platforms that facilitate swaps between virtual assets and fiat currency or between different digital assets. Custody licences apply to firms that hold or control customer assets or access credentials. Separate categories address derivatives trading, portfolio management, lending platforms, and issuers of asset-referenced or fiat-referenced tokens.

To obtain a full licence, applicants must incorporate a company in Pakistan under the Companies Act 2017 and satisfy minimum paid-up capital thresholds linked to the chosen licence type. Directors and key staff face fit-and-proper assessments. Operators are also required to maintain anti-money laundering systems, transaction monitoring, cybersecurity measures, and business continuity plans.

Customer Asset Protections and Operational Standards

Licensed providers must keep customer holdings segregated from their own corporate assets. They may not lend or pledge client assets without written consent. Additional rules address governance, market conduct, prudential standards, operational resilience, technology controls, and anti-money laundering and counter-terrorism financing obligations.

PVARA Chairman and Minister of State Bilal Bin Saqib has stated that these segregation and consent rules form core consumer safeguards under the regime.

Two Pathways to Authorisation

Firms preparing to establish a local entity can first seek a no-objection certificate by submitting a business plan and corporate documents. Preliminary approval allows them to complete further compliance steps, including registration with the Financial Monitoring Unit, before incorporating and applying for a full virtual asset service provider licence.

A regulatory sandbox offers an alternative route. Businesses admitted to the sandbox may test new products under agreed limits while meeting reporting, asset-safeguarding, and disclosure requirements. Successful completion can lead to a full licence application.

The final rules followed a public consultation conducted from June 11 to July 2, which included a stakeholder webinar.

Earlier Approvals and Banking Access

Binance and HTX received preliminary approvals in December 2025. Those clearances permitted the exchanges to register with Pakistan’s anti-money laundering system and prepare local subsidiaries ahead of full licence applications. With the regulations now notified and the portal open, those firms can advance through the remaining stages.

The licensing structure also links approved providers to the banking system. On April 14 the State Bank of Pakistan issued Circular No. 10 of 2026, allowing regulated financial institutions to open accounts for PVARA-licensed virtual asset service providers. The policy includes client money accounts that keep customer funds separate from a provider’s operating capital. Banks must verify licences, conduct due diligence, and monitor accounts while complying with foreign exchange and anti-money laundering rules. Financial institutions themselves remain barred from using their own capital or customer deposits to trade or hold virtual assets.

Pakistan’s parliament established PVARA as a permanent statutory regulator in March when it passed the Virtual Assets Act. The authority is responsible for licensing and supervising the virtual asset sector. A separate law-enforcement structure operates in parallel, with the Federal Investigation Agency maintaining a unit focused on cryptocurrency-related money laundering and other offences.

Existing providers now face a fixed compliance window. Firms that miss the September 5 application deadline must stop serving the Pakistani market, while those that obtain preliminary approval can continue the process toward full authorisation under the new standards.