Pakistan opens crypto licensing as its regulator declares the prohibition era over

Pakistan ends eight years of crypto prohibition

Pakistan's Virtual Assets Regulatory Authority (@PakistanVARA) notified its licensing regulations on Friday and opened the application portal for crypto businesses, with Chairman Bilal Bin Saqib (@BilalBinSaqib) declaring that eight years of prohibition are over. "Get licensed. Get compliant. Come build in Pakistan," he said in an announcement accompanying the launch.

The move is the most visible milestone yet in a broader regulatory overhaul. Pakistan's parliament passed the Virtual Assets Act 2026, converting a temporary ordinance into permanent law and creating a national regulator to oversee exchanges, wallet providers, and other crypto businesses. The Act introduces strict licensing requirements, enforces global anti-money laundering and counter-terrorism financing standards, and imposes significant penalties for violations.

Deadline set for existing operators

Existing virtual asset service providers cannot sit on the sidelines. Under the Virtual Assets Act, they must apply for No Objection Certificates by September 5 or cease operations. Unlicensed operations face fines of up to PKR 50 million and prison terms of up to five years.

With an estimated 40 million crypto users and a third-place ranking in the Chainalysis 2025 Global Crypto Adoption Index, behind only India and the United States, Pakistan's regulatory move is long overdue and highly consequential. In 2025, APAC furthered its status as the global hub of grassroots crypto activity, led by India, Pakistan, and Vietnam, whose populations drove widespread adoption across both centralized and decentralized services.

For years, Pakistan's crypto landscape existed in a legal grey zone: millions of citizens actively traded and held digital assets while regulators remained largely silent or, at times, actively restrictive. The opening of the licensing portal draws a clear line under that era and sets the stage for a regulated, open market.

Sources:
CCN: Pakistan Moves From Crypto Ban to Regulation as Parliament Passes Virtual Assets Act 2026
Chainalysis: 2025 Global Crypto Adoption Index
Frasat and Partners: Pakistan Virtual Assets Regulatory Authority, A Complete Legal Guide 2026