Pakistan has officially opened its doors to international crypto exchanges and Virtual Asset Service Providers (VASPs), inviting them to apply for licensing under the newly enacted Virtual Assets Ordinance 2025. The initiative, led by the Pakistan Virtual Asset Regulatory Authority (PVARA), represents a pivotal step toward building a regulated digital assets ecosystem that aligns with international compliance and security standards.
The announcement underscores Pakistan’s ambition to formalize its rapidly expanding digital economy. With over 40 million active users and an estimated annual trading volume exceeding $300 billion, the country’s virtual assets market is regarded as one of the fastest-growing in the region. PVARA emphasized that the licensing regime is designed to create a transparent and secure framework while attracting credible global partners to participate in this growth.
The Virtual Assets Ordinance, promulgated on July 8, 2025, and published in the Gazette of Pakistan a day later, granted PVARA the authority to regulate, license, and supervise VASPs. Its mandate covers stringent measures for anti-money laundering (AML), counter-terrorism financing (CFT), and cybersecurity protections, while also offering opportunities for innovation through regulatory sandboxes, including Shariah-compliant digital finance solutions.
Bilal bin Saqib, chairman of PVARA and minister of state for crypto and blockchain, described the move as an opportunity for Pakistan to establish itself as a serious player in the global digital finance ecosystem. “This invitation is directed at leading VASPs worldwide to join us in building an inclusive and transparent financial future for Pakistan,” he said. He further stressed that the initiative aligns closely with the global standards of the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank.
Eligibility requirements ensure that only firms with credible international track records can apply. The licensing process is open to exchanges regulated by recognized global bodies, including the US Securities and Exchange Commission (SEC), UK Financial Conduct Authority (FCA), European Union VASP framework, UAE Virtual Asset Regulatory Authority (VARA), and Singapore Monetary Authority (MAS). Applicants must demonstrate robust compliance systems covering AML, CFT, know-your-customer (KYC) checks, and cybersecurity protections.
The submission process requires detailed documentation, including company profiles, regulatory credentials, compliance history, and operational models tailored for Pakistan’s market. Applications are being accepted on a rolling basis via email to info@pvara.gov.pk, with the subject line “EoI VASP Licensing – [Company Name].” Physical submissions can also be delivered directly to PVARA’s Islamabad headquarters.
By seeking international partnerships, PVARA aims not only to safeguard consumers but also to foster opportunities in fintech innovation, remittances, tokenized assets, and blockchain-driven services. As an autonomous federal body, it operates under the oversight of a multi-stakeholder board comprising the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan (SECP), and the Federal Board of Revenue (FBR), ensuring a balance between regulatory control and industry growth.
This initiative signals Pakistan’s intent to integrate blockchain and digital assets into its financial mainstream. By offering a structured licensing path to global exchanges, the country is looking to strengthen investor confidence while laying the groundwork for a more inclusive and modern financial system.
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