Pakistan launches virtual asset licensing regime

Pakistan has officially launched its virtual asset licensing regime, marking a shift from a decade-long prohibition of cryptocurrencies to a formal regulatory framework. The Pakistan Virtual Assets Regulatory Authority (PVARA) has notified the Licensing Regulations, 2026, following the enactment of the Virtual Assets Act, 2026.

Under the new regulations, all existing virtual asset service providers (VASPs) are classified as “transitional persons” and must apply for a No Objection Certificate (NOC) to continue legal operations. The deadline for these applications is September 5, 2026. Trading platforms that fail to meet this deadline will be required to cease operations in the country.

Bilal Bin Saqib, the special assistant to the prime minister on blockchain and cryptocurrency, has invited foreign businesses to establish operations in Pakistan under these new, enforceable rules. The move aims to integrate virtual assets into the formal economy, protect consumers, and build financial infrastructure. This follows previous initiatives, including plans for a national strategic Bitcoin reserve and the allocation of surplus electricity to Bitcoin mining and AI data centers.