Pakistan Launches Licensing for International Crypto Firms
Pakistan has introduced a federal licensing system for international cryptocurrency businesses. The government invited leading exchanges and virtual asset service providers (VASPs) to submit Expressions of Interest (EoIs) to enter its digital asset market.
On Saturday, the Pakistan Virtual Asset Regulatory Authority (PVARA) issued the call, as reported by local news outlet Dawn. Bilal bin Saqib, PVARA Chair and Minister of State for Crypto and Blockchain, said, “This EoI is our invitation to the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan.”
Licensing Criteria and Regulatory Framework
Only firms licensed by established regulators can apply. These include the US Securities and Exchange Commission (SEC), the UK Financial Conduct Authority, the EU’s VASP framework, the UAE’s Virtual Assets Regulatory Authority, and Singapore’s Monetary Authority.
Applications must include company profiles, current licenses, jurisdictions, proposed services like trading and custody, technology and security measures, assets under management, revenues, compliance history, and a business model tailored for Pakistan.
The licensing system is based on the Virtual Assets Ordinance 2025. It aims to prevent illicit finance while supporting fintech, remittances, and tokenization. The framework also encourages Shariah-compliant products through regulatory sandboxes.
PVARA will license, regulate, and supervise VASPs. It follows standards set by the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank.
Pakistan’s Growing Crypto Market and Regulatory Developments
Pakistan ranks third in Chainalysis’ 2025 Global Crypto Adoption Index. The country is one of the fastest-growing cryptocurrency markets worldwide.
- On May 22, 2025, Pakistan established the Pakistan Digital Assets Authority (PDAA) to oversee digital currencies and blockchain technology.
- On May 28, 2025, Pakistan launched its first government-backed Bitcoin reserve. At the Bitcoin 2025 conference in Las Vegas, Bilal bin Saqib highlighted this as part of the country’s pro-crypto regulatory shift.
- Pakistan allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI centers. This initiative is supported by the Pakistan Crypto Council and the Ministry of Finance.
- In July 2025, the IMF opposed Pakistan’s plan to subsidize electricity for crypto mining, rejecting the proposal for energy-intensive sectors.
Despite creating new regulatory bodies, the State Bank of Pakistan maintains its ban on crypto trading, creating a regulatory paradox.
