Pakistan Calls on International Crypto Firms to Apply for Licenses

Highlights:

• Pakistan invites international crypto firms to apply for licenses under a new framework.
• Applicants must meet strict AML, KYC, and counter-terrorism financing regulations.
• PVARA aims to boost fintech, tokenization, and Shariah-compliant digital asset services.

Pakistan is opening its market to international crypto businesses. Big crypto exchanges and virtual asset service providers can apply for licenses under a new federal system. On Saturday, the Pakistan Virtual Asset Regulatory Authority (PVARA) asked international crypto exchanges and other virtual asset service providers (VASPs) to apply for licenses to enter Pakistan’s digital asset market, Dawn reported.

The newly created Pakistan Virtual Asset Regulatory Authority (PVARA) made the call for Expressions of Interest (EoI). PVARA said this step will bring Pakistan’s virtual asset sector in line with global rules on anti-money laundering and counter-terrorism financing. It will also provide a safe framework for fintech innovation. Bilal bin Saqib, PVARA chairman 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.”

🚨 PAKISTAN INVITES GLOBAL CRYPTO FIRMS TO APPLY FOR LICENSES

Pakistan ranks 3rd in global CRYPTO adoption, right behind INDIA at #1.

But with India’s hash tax and unclear laws choking the industry, how long before that ranking slips? ⏳ pic.twitter.com/I9WDnOt4Up

— Wise Advice (@wiseadvicesumit) September 14, 2025

Application Process and Rolling Submissions

Applicants for Pakistan’s crypto licenses must already be licensed in at least one major jurisdiction. They must follow strong anti-money laundering, counter-terrorism financing, and know-your-customer rules. Submissions must include the company profile, existing licenses and jurisdictions, and proposed services such as trading, custody, and payments. They should also cover technology and security standards, assets under management, revenues, compliance history, and a business model specific to Pakistan.

Only firms approved by top regulators can apply, including the UK Financial Conduct Authority, the US Securities and Exchange Commission, the EU’s VASP framework, the UAE’s Virtual Assets Regulatory Authority, and the Monetary Authority of Singapore. PVARA said applications will be accepted on a rolling basis via email. 

PVARA, established under the Virtual Assets Ordinance 2025, is tasked with licensing, regulating, and supervising virtual asset service providers. It follows standards set by the Financial Action Task Force (FATF), International Monetary Fund (IMF), and World Bank. PVARA said the framework aims to curb illicit finance while creating opportunities in fintech, remittances, and tokenization. It also includes Shariah‑compliant products through regulatory sandboxes.

Pakistan Becomes Fastest-Growing Crypto Market

Pakistan rose to third place in Chainalysis’ 2025 Global Crypto Adoption Index, moving up six spots. It is now one of the world’s fastest-growing crypto markets.

Even under a ban and without a regulator, Pakistan hit #3 in crypto adoption. The goal is to create a blueprint for how digital assets should be embraced. https://t.co/qaEpRWdmck

— Bilal bin Saqib MBE (@Bilalbinsaqib) September 4, 2025

In March, Pakistan set up the Crypto Council to build crypto-friendly rules. Binance co-founder Changpeng Zhao became an adviser in April to help with regulations, blockchain, and digital assets. Pakistan also announced plans to create a government-led Bitcoin Strategic Reserve.

Today, 🇵🇰 rewrites history.

At Bitcoin 2025 Vegas, Minister of Crypto and Blockchain @bilalbinsaqib announces that Pakistan will be setting up its Strategic Bitcoin Reserve. pic.twitter.com/1vNjryqimf

— Pakistan Crypto Council (@cryptocouncilpk) May 29, 2025

Speaking at the Bitcoin 2025 conference in Las Vegas, Bilal Bin Saqib said this reflects the country’s new pro-crypto regulatory approach. Moreover, the government also set aside 2,000 megawatts of surplus electricity for Bitcoin mining and AI centers. This initiative is led by the Pakistan Crypto Council and supported by the Ministry of Finance.