Pakistan has taken a historic step toward legitimizing its cryptocurrency market with the launch of an official licensing process for crypto exchanges. The move, announced by the Pakistan Virtual Assets Regulatory Authority, introduces a framework designed to regulate one of the world’s largest unregulated digital markets, which experts estimate currently serves nearly 40 million users with annual trading volumes close to $300 billion.
The establishment of a licensing regime marks a critical shift in Pakistan’s financial strategy. For years, the local crypto economy has operated in a legal grey area, with informal exchanges and peer-to-peer platforms filling the gap left by regulatory uncertainty. By introducing formal licences, the government aims to align the country’s digital asset market with international regulatory standards, while mitigating risks associated with money laundering, fraud, and other illicit activities.
The framework requires exchanges applying for licences to demonstrate compliance with global best practices. Applicants must hold permits from recognized foreign regulators, follow stringent Know Your Customer (KYC) rules, and provide detailed corporate disclosures. These requirements are expected to improve transparency, strengthen consumer protections, and pave the way for Pakistan to attract foreign investment into its growing fintech ecosystem.
Analysts believe the licensing system could catalyze the integration of crypto assets into Pakistan’s mainstream economy. By prioritizing regulation alongside innovation, the government seeks to balance financial risk management with the potential for growth in digital finance. In addition to curbing illegal financial activity, the system is designed to build trust among global investors and position Pakistan as a credible player in the global blockchain economy.
The licensing initiative builds on the creation of the Pakistan Crypto Council (PCC), which was launched earlier this year as part of the government’s broader digital finance roadmap. Formed in March, the PCC was tasked with shaping policies around blockchain and cryptocurrency integration into the financial system.
The council is chaired by Finance Minister Muhammad Aurangzeb and includes key decision-makers such as the governor of the State Bank of Pakistan, the chairman of the Securities and Exchange Commission of Pakistan, the federal law secretary, and the federal IT secretary. Its mandate includes driving innovation in blockchain adoption while ensuring that new technologies are integrated responsibly into Pakistan’s economic framework.
Bilal bin Saqib, appointed as Chief Advisor to the Finance Minister for crypto affairs, has also been instrumental in shaping the country’s digital asset policies. His role reflects the government’s recognition of crypto and blockchain as vital to the country’s technological future, particularly in attracting young entrepreneurs, global investors, and fintech innovators.
According to a recent statement from the Finance Division, the launch of the licensing system and the role of the PCC collectively represent a significant step toward Pakistan’s vision of embedding blockchain technology into its broader economic strategy. By formalizing the crypto sector, the government aims not only to safeguard investors but also to unlock new opportunities in digital trade, cross-border transactions, and financial inclusion.
As global markets increasingly embrace digital assets, Pakistan’s regulatory framework signals its readiness to be part of this transformation. By pairing compliance with innovation, the country is setting the stage for its crypto market to evolve from informal operations into a recognized component of its financial ecosystem.
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