Pakistan has moved forward in formalising oversight of its fast-growing digital asset market as the Pakistan Virtual Assets Regulatory Authority issued No Objection Certificates to global virtual asset platforms Binance and HTX. The development, confirmed in an official press statement issued on December 12, forms part of the country’s broader effort to establish a structured, compliant, and internationally aligned regulatory framework for virtual asset service providers.
According to PVARA, the NOCs were granted following a formal review process conducted in coordination with relevant public-sector stakeholders. The assessment focused on the governance structures of the applicant firms, the robustness of their compliance frameworks, the effectiveness of risk management controls, and their alignment with Pakistan’s emerging regulatory requirements for virtual asset activities. Authorities clarified that the issuance of the NOCs does not constitute a full operating licence and should be viewed as an initial step within a phased regulatory pathway.
The NOCs allow Binance and HTX to begin preparatory and engagement activities in Pakistan under defined regulatory oversight. Under the framework, the firms are authorised to initiate registration on the Financial Monitoring Unit’s goAML system as reporting entities, engage with the Securities and Exchange Commission of Pakistan, prepare and submit full virtual asset service provider licence applications, and provide AML-registered services in line with PVARA regulations. Any broader commercial operations remain subject to additional approvals and licensing requirements.
PVARA said the move reflects its risk-based and phased approach to regulating the virtual asset sector, which is consistent with international regulatory practices. The Authority emphasised that the objective is to support responsible innovation while safeguarding market integrity, consumer protection, and overall financial stability. Officials said early regulatory engagement is critical given the scale and pace of digital asset adoption in the country.
Finance Minister Senator Muhammad Aurangzeb said the introduction of a structured NOC framework demonstrates Pakistan’s commitment to responsible innovation and financial discipline. He noted that the approach allows credible global platforms to engage with the local market while ensuring regulatory visibility and enforcement from the outset.
As part of its broader digital transformation agenda, PVARA is positioning itself as the world’s first AI-enabled virtual assets regulatory authority. The Authority has already deployed an AI-powered application evaluation system used to review VASP submissions, an in-house AI-enabled recruitment portal, and an AI-assisted regulatory document review tool. According to PVARA, these technologies enhance supervisory efficiency, reduce processing times, and align Pakistan’s regulatory capabilities with evolving global standards.
PVARA Chairman Bilal Bin Saqib described the issuance of the NOCs as the beginning of a new chapter for Pakistan’s digital asset ecosystem. He said the move represents the first step toward a fully licensed and regulated environment that places consumer protection, financial integrity, and responsible innovation at its core. By adopting a phased and internationally aligned approach, he added, Pakistan is ensuring that only well-governed and fully compliant global platforms are able to progress toward full licensing.
The framework is also designed to strengthen Pakistan’s alignment with Financial Action Task Force standards and reinforce national commitments to robust anti-money laundering and counter-terror financing safeguards. PVARA has stated that every entity entering Pakistan’s digital asset market will be held to high standards of transparency, governance, and risk management.
Pakistan currently ranks third globally in crypto adoption and is home to an estimated 30 to 40 million users. Industry-wide assessments estimate that annual digital asset trading activity linked to Pakistan exceeds $300 billion, highlighting both the scale of market participation and the urgency of regulatory oversight. PVARA said timely and structured regulation is essential to bring this activity into a compliant, transparent, and internationally aligned framework.
The Authority said its early actions demonstrate clear regulatory intent. Rather than delaying oversight, PVARA has moved to establish regulatory presence, enforce AML and CFT expectations, and signal to global markets that Pakistan is open to responsible innovation under clear rules, strong governance, and active supervision.
As the designated body responsible for regulating, licensing, and supervising virtual asset service providers in Pakistan, PVARA said it will continue engaging with domestic and international stakeholders as it advances subsequent phases of its regulatory framework. Additional guidance on licensing standards, compliance obligations, and supervisory expectations is expected to be issued in due course as Pakistan builds out its digital asset regulatory landscape.
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