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Pakistan has activated its virtual asset licensing framework, giving existing crypto service providers until September 5 to enter the regulatory process or stop operating.
The Pakistan Virtual Assets Regulatory Authority is accepting applications for its regulatory sandbox, No Objection Certificates and VASP licenses under the Virtual Assets Act, 2026. Transitional firms operating in Pakistan on or before March 5 must submit an NOC application by September 5.
Existing Crypto Operators Must Seek NOC by September 5
PVARA says transitional operators that do not submit an NOC application by the deadline must cease operations. Other firms can apply for an NOC or enter the regulatory sandbox when they meet the applicable requirements.
The NOC is preliminary approval rather than a full operating license. Successful applicants must complete regulatory requirements, register with Pakistan’s Financial Monitoring Unit and establish a local company before submitting their VASP license application.
PVARA’s licensing page says applications are open, although its dedicated NOC page currently directs applicants to email submissions while online NOC filing is temporarily unavailable.
Framework Covers Exchanges, Custody, Lending, and Derivatives
Pakistan’s licensing regime covers services including exchanges, custody, broker-dealer activity, investment advice, lending and borrowing, derivatives, asset management, transfers and settlement, token issuance and certain mining-related services. Applicants can seek authorization for one or more categories.
Licensees must meet requirements covering governance, cybersecurity, anti-money laundering controls and safeguarding of customer assets. The framework requires customer assets to be segregated from a provider’s own property and restricts reuse or pledging without the customer’s prior informed consent.
Licensed VASPs Can Access Operational and Client Bank Accounts
The State Bank of Pakistan changed its banking rules on April 14 to allow regulated institutions to open accounts for PVARA-licensed VASPs. Licensed providers can also use segregated Client Money Accounts for authorized customer transactions.
NOC holders have narrower access. Banks may open limited-purpose accounts so they can complete licensing formalities, but virtual asset-related transactional services are available only after PVARA grants a full license.
PVARA’s final Virtual Asset Services Regulations were notified on August 21 after a consultation that ran from June 11 through July 2.
Existing operators now have until September 5 to enter the NOC process. Firms that do not apply must cease operations in Pakistan.
