Pakistan launches mandatory crypto licensing regime

The new requirements stem from the Virtual Assets Act of 2026, which mandates that companies providing services—including exchanges, custody, lending, and mining—must secure a no-objection certificate to continue operating. Operators who remain active after the September deadline without a filed application will be in violation of Section 70 of the Act, which now governs the country’s entire virtual asset sector.

To secure a full license, firms must incorporate locally under the Companies Act 2017 and adhere to strict standards regarding capital requirements, cybersecurity, and anti-money laundering controls. A key component of the new rules is the mandatory segregation of customer assets, a move intended to bolster market integrity. PVARA Chairman Bilal Bin Saqib emphasized that providers are prohibited from lending or pledging client holdings without explicit written consent.

International exchanges Binance and HTX, which gained preliminary approvals in December 2025, are now positioned to advance toward full licensure. This regulatory shift also restores access to the banking system for approved firms, following an April central bank policy change that ended an eight-year prohibition on financial services for digital asset providers. While the regulatory authority manages oversight, the Federal Investigation Agency has established a dedicated crypto unit to monitor for money laundering and illicit activities, ensuring that the new market entry remains under strict supervision.