Pakistan sets September 5 deadline for crypto licensing

The Pakistan Virtual Assets Regulatory Authority (PVARA) has established a September 5 deadline for existing virtual asset service providers (VASPs) to apply for no-objection certificates (NOCs). Firms that fail to submit applications by this date must cease operations in the country.

This move transitions Pakistan from a broad policy stance toward a formal licensing and supervision regime. PVARA Chairman Bilal Bin Saqib stated that the framework aims to bring virtual assets into the formal economy, protect consumers, and build financial infrastructure. The regulations apply to providers that market to Pakistani users, onboard local customers, or support Pakistani rupee payment rails.

In a shift from previous restrictions, the State Bank has issued instructions allowing regulated banks to open accounts for PVARA-licensed VASPs and their customers. To prevent the commingling of funds, banks are required to maintain separate, non-remunerative rupee client accounts for licensed providers. Financial institutions must also enforce strict anti-money laundering (AML) and know-your-customer (KYC) standards.