Pakistan Gives Crypto Firms Two Weeks to Seek Licenses or Exit Market

Crypto companies serving customers in Pakistan have less than two weeks to begin the country's new licensing process or risk being forced to shut down their local operations.

Under the framework introduced by the Pakistan Virtual Assets Regulatory Authority (PVARA), companies that were already providing virtual-asset services on or before March 5, 2026, when the new law took effect, are classified as transitional entities.

Those businesses must apply for a No-Objection Certificate (NOC) by September 5. Under Article 70 of Pakistan's Virtual Assets Act 2026, continuing to operate without submitting an application after the deadline would constitute a violation.

At the same time, PVARA has opened its online portal for companies seeking full virtual-asset licenses, as well as firms looking to participate in the regulator's sandbox.

Pakistan Moves Crypto Firms Into a Formal Licensing Regime

PVARA Chairman Bilal Bin Saqib unveiled the new regulatory framework in a televised address on Saturday, presenting it as an effort to protect investors from fraud while bringing the country's digital-asset market under formal regulatory oversight.

The framework extends well beyond cryptocurrency exchanges.

According to Saqib, regulated digital assets could eventually support a broader range of financial activity, including export financing, remittances and lending for small and medium-sized businesses.

Stablecoins and tokenization are also expected to play a role in that expansion, potentially giving businesses new ways to move and raise capital through blockchain-based infrastructure.

What Crypto Services Will Require a License?

Pakistan's new licensing regime covers a broad range of virtual-asset activities.

The framework includes:

• Trading platforms and exchanges

• Digital-asset custody

• Brokerage services

• Advisory services

• Lending and borrowing

• Derivatives

• Discretionary asset management

• Transfer and settlement services

• Mining infrastructure

• Issuance of tokens linked to assets or a single fiat currency

Companies can apply for licenses covering more than one category, allowing larger operators to build multiple lines of regulated business under the same framework.

The breadth of the regime signals that Pakistan is attempting to regulate the wider digital-asset ecosystem rather than simply imposing rules on crypto exchanges.

Capital, Compliance and Cybersecurity Requirements

Companies seeking licenses must first be incorporated in Pakistan under the Companies Act 2017 and meet minimum paid-up capital requirements corresponding to the activities they intend to provide.

Directors and senior executives will also face fit-and-proper requirements covering competence and integrity.

Anti-money laundering controls form another central part of the framework. Licensed companies will be expected to conduct customer due diligence, monitor transactions and report suspicious activity.

The rules also introduce requirements covering cybersecurity and business continuity.

For crypto businesses, these obligations could significantly increase compliance costs. But they also bring the sector closer to the standards applied to conventional financial institutions.

Customer Assets Must Be Kept Separate

One of the most significant requirements concerns the treatment of customer funds.

Licensed virtual-asset service providers must keep customer assets separate from their own corporate assets. They are also prohibited from lending or pledging customer assets without obtaining written consent.

The requirement creates a clearer legal distinction between a platform's balance sheet and the assets it holds on behalf of customers.

PVARA has emphasized that these safeguards are mandatory legal requirements rather than voluntary commitments by individual companies.

In return, licensed firms are expected to gain access to Pakistan's formal banking system, potentially addressing one of the sector's longstanding challenges.

That development comes after Pakistan lifted an eight-year restriction that had prevented banks from providing services to virtual-asset businesses.

Foreign Crypto Exchanges Face a Local-Presence Requirement

International platforms will also have to adapt if they want to continue serving Pakistani customers under the new framework.

After obtaining an NOC, a company must register with Pakistan's financial intelligence authorities, establish a local subsidiary and then proceed with the application for a full license.

That effectively means foreign crypto exchanges serving Pakistan cannot simply operate remotely from overseas if they want to remain active in the market under the new regime.

Binance and HTX are among the platforms that have already obtained similar certificates, signaling that major international players are beginning to engage with the country's regulatory framework.

Pakistan Is Rewriting the Rules for Its Crypto Market

The new regime marks a significant shift in Pakistan's treatment of digital assets.

Rather than leaving crypto activity in a regulatory grey area, authorities are creating a structured licensing system covering exchanges, custody, payments, tokenization, lending and other digital-asset services.

The approach could raise the cost of operating in Pakistan, particularly for smaller companies that may struggle to meet capital, compliance and cybersecurity requirements.

But regulation could also remove one of the industry's biggest obstacles: uncertainty over whether crypto companies can operate within the formal financial system.

The critical test will be whether Pakistan can strike the right balance between investor protection and innovation.

A clear licensing route could attract institutional capital and encourage legitimate businesses working with stablecoins and tokenization.

If the process becomes excessively expensive or difficult to navigate, however, some companies could choose to leave the market rather than absorb the cost of compliance.