Pakistan Opens Crypto Licensing Portal, Sets September 5 Deadline for VASPs

Pakistan's Virtual Assets Regulatory Authority (PVARA) has officially launched its licensing portal, requiring all existing virtual asset service providers (VASPs) operating in the country to submit a no-objection certificate (NOC) application by September 5, 2026, or cease operations entirely. Firms that provided virtual asset services on or before March 5 must complete the application process within this window, according to PVARA's licensing website. The regulator warned that continuing to operate after the deadline without filing an application would constitute a regulatory offense.

The rollout moves Pakistan's virtual asset framework from legislation into active enforcement. The new regulations, which followed a public consultation period held between June 11 and July 2, cover a broad range of activities including crypto exchanges, custody services, broker-dealer operations, lending, derivatives, asset management, token issuance, and mining-related services. VASPs have two routes to full licensing: an NOC pathway for firms preparing to incorporate locally, and a regulatory sandbox for companies testing new products under PVARA supervision before pursuing a full license.

Licensed providers will be required to maintain strict operational standards under the new framework. These include keeping customer holdings separate from corporate assets, obtaining written consent before lending or pledging client funds, and implementing robust governance, cybersecurity, operational resilience, and anti-money laundering controls. The framework also mandates compliance with counter-terrorism financing requirements, signaling Pakistan's intent to align its crypto sector with international regulatory expectations.

The licensing launch builds on groundwork laid over the past year. Pakistan's parliament passed the Virtual Assets Act in March, establishing PVARA as the statutory regulator for the sector. PVARA has already issued preliminary NOCs to major exchanges including Binance and HTX in December 2025, allowing those firms to establish local subsidiaries and prepare full license applications—a process that can now move forward following the notification of the final regulations.