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August 22, 2026
Pakistan has formally opened the licensing process for virtual asset service providers, marking a major step toward regulating the country’s growing digital asset sector.
Pakistan’s virtual asset sector is moving into a new regulatory phase after the Pakistan Virtual Assets Regulatory Authority (PVARA) opened its licensing portal for companies providing virtual asset-related services.
The licensing framework has been introduced under the Virtual Assets Act, 2026, giving businesses operating in the sector a formal process through which they can seek regulatory approval and continue their operations.
The new framework covers 10 different areas of virtual asset activity, including exchanges, custody services, broker-dealer operations, advisory services, lending and borrowing, derivatives, asset management, transfer and settlement services, issuance, and mining-related activities.
Rather than applying a single set of rules to every type of business, the regulations introduce requirements tailored to different activities. These include standards for business conduct, financial safeguards, technology systems, and anti-money laundering and counter-terrorism financing measures.
For companies that were already providing virtual asset services before the new law came into force, the first important deadline is September 5, 2026. Existing operators are required to submit their NOC applications by this date. Businesses that continue operating without submitting an application after the deadline could face penalties under the law.
The framework also places greater emphasis on protecting customer assets. PVARA Chairman and Minister of State Bilal Bin Saqib said licensed providers will be required to keep customer holdings separate from their own assets. Providers will also be prohibited from lending or pledging customer assets without obtaining written consent.
The licensing process itself will take place in stages. Businesses seeking to establish themselves in Pakistan can enter a regulatory sandbox or apply for an NOC under Section 19 before proceeding toward a full licence after incorporation.
Another important development is the opening of access to formal banking services for licensed virtual asset businesses. Under a State Bank of Pakistan circular issued in April 2026, regulated financial institutions can now open accounts for PVARA-licensed virtual asset service providers, including segregated Client Money Accounts. This replaces restrictions on banking access that had been in place since 2018.
The regulatory framework was developed following a public consultation conducted between June 11 and July 2, 2026, giving industry stakeholders an opportunity to provide feedback before the rules were finalized.
PVARA itself was established as a permanent statutory authority through an Act of Parliament in March 2026. Since then, the authority has moved to establish the basic infrastructure needed to regulate the sector, including banking access, stakeholder consultation, and now a formal licensing mechanism.
