The Pakistan Virtual Assets Regulatory Authority has formally notified its licensing regulations and opened the licensing portal for virtual asset service providers, completing the regulatory framework for licensing and supervision of virtual asset activities in Pakistan. The framework has been introduced under the Virtual Assets Act, 2026 and establishes a structured licensing regime covering different types of services within the virtual asset sector. Existing providers operating in the market have been given a specific deadline to submit their applications, marking a significant step toward bringing virtual asset activities under a formal regulatory structure.
Under the newly notified regulations, PVARA has established 10 licence categories covering a broad range of virtual asset services. These categories include exchanges, custody services, broker-dealer activities, advisory services, lending and borrowing, derivatives, asset management, transfer and settlement services, virtual asset issuance and mining-related services. Each licence category will be subject to requirements based on the nature of the activity, including conduct standards, prudential requirements, technology controls and anti-money laundering and counter-terrorism financing obligations.
Existing virtual asset service providers have until September 5, 2026, to submit their applications for a No-Objection Certificate. The deadline applies to entities that were providing virtual asset services before the Virtual Assets Act, 2026 came into force. Under Section 70 of the Act, such operators are required to submit their NOC applications by the specified date or stop providing virtual asset services. PVARA has also clarified that continuing operations without submitting the required application after September 5 would constitute an offence under the regulatory framework.
PVARA Chairman and Minister of State Bilal Bin Saqib said the licensing framework would establish legal protections for customer assets held by regulated virtual asset service providers. The framework requires licensed providers to keep customer assets separate from their own assets, providing a distinction between client holdings and the provider’s proprietary assets. It also prohibits licensed providers from lending or pledging customer assets without obtaining written consent, establishing specific safeguards around the handling and use of customer holdings.
The licensing regulations follow a public consultation conducted by PVARA between June 11 and July 2, 2026, under reference PVARA/CON/001/2026. The consultation also included a stakeholder webinar through which participants were able to provide views on the proposed regulatory framework. The licensing process itself will operate through two stages for applicants seeking to establish their operations in Pakistan. Prospective applicants may enter a regulatory sandbox or initially obtain an NOC under Section 19, followed by an application for a full licence after completing incorporation requirements.
The framework also distinguishes between new applicants and transitional operators already providing virtual asset services. While prospective businesses may use the regulatory sandbox or proceed through the NOC and incorporation process, existing transitional operators are required to submit their NOC applications by September 5, 2026. This transition mechanism gives existing market participants a defined route into the new licensing structure while establishing a regulatory requirement for continued operations.
Licensed virtual asset service providers will also receive access to Pakistan’s formal banking system under the new regulatory arrangement. State Bank of Pakistan Circular No. 10 of 2026, issued on April 14, permits regulated financial institutions to open accounts for PVARA-licensed virtual asset service providers, including segregated Client Money Accounts. The measure replaces the prohibition on banking access for virtual asset businesses that had been in place since 2018, creating a formal banking channel for entities that obtain the required PVARA licensing status.
PVARA was established as a permanent statutory authority through an Act of Parliament in March 2026. In less than six months, the authority has established banking access for licensed providers, conducted a public consultation and notified the licensing regulations. The opening of the licensing portal now provides a formal mechanism for virtual asset businesses to enter the regulatory system, shifting Pakistan from an earlier prohibition-based approach toward an operational licensing and supervisory framework for virtual asset activities.
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