News Desk
- Move aims to regulate $300bn market with over 40m local users
- Licensed global VASPs, exchanges eligible under FATF, IMF, World Bank standards
- Chairman Bilal bin Saqib says initiative seeks “transparent and inclusive” digital future
ISLAMABAD: The Pakistan Virtual Asset Regulatory Authority (PVARA) has invited international virtual asset service providers (VASPs) and global exchanges to apply for licensing in Pakistan.
A Finance Division statement described the move as a landmark step toward formalising the country’s vast digital economy, which officials estimate involves more than 40 million users and annual transactions exceeding $300 billion.
The call for Expressions of Interest (EoI) is announced under the Virtual Assets Ordinance 2025, promulgated on July 8 and published in the Gazette the following day. The ordinance empowers PVARA to regulate and supervise VASPs, in line with standards set by the Financial Action Task Force (FATF), the International Monetary Fund (IMF) and the World Bank. The Authority is also responsible for ensuring strict compliance with global standards on anti-money laundering (AML), combating the financing of terrorism (CFT), and maintaining a robust cybersecurity framework. The Ordinance requires PVARA to implement Know Your Customer (KYC) safeguards along with the AML and CFT standards. For the ordinary investor, this means that companies must verify user identities (KYC), block suspicious transactions that may involve money laundering (AML), and prevent misuse of funds for terrorism-related activities (CFT).
“This EoI is our invitation to the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan,” Bilal bin Saqib, Chairman of PVARA and Minister of State for Crypto and Blockchain, said in the statement.
Licensing framework
The EoI invitation is open to firms already licensed in, at least one international jurisdiction, such as the US Securities and Exchange Commission (SEC), UK Financial Conduct Authority (FCA), EU VASP registry, UAE’s Virtual Assets Regulatory Authority (VARA) or Singapore’s Monetary Authority (MAS) — and with established records of AML/CFT/KYC compliance.
Applicants must submit company profiles, licensing details, operational overviews, compliance histories and proposed models for operations in Pakistan. Submissions are to be emailed in PDF format to [email protected] with the subject line “EoI VASP Licensing – [Company Name]”.
Market context
Independent analysts noted that Pakistan’s digital asset activity ranks among the fastest-growing globally, despite previous regulatory uncertainty. A report cited by Reuters this year estimated crypto adoption in Pakistan as among the top five worldwide, driven by remittances and retail investors. Officials now view regulation as a way to harness that growth while reducing illicit finance risks.
Financial experts told Dawn newspaper that the licensing framework could also boost confidence among international fintech investors, provided enforcement of AML/CFT safeguards is consistent. They added that the inclusion of Shariah-compliant regulatory sandboxes could position Pakistan uniquely in the Muslim world’s digital finance landscape.
About PVARA
The autonomous authority is governed by a multi-stakeholder board that includes the Governor of the State Bank of Pakistan, the Chairman of the Securities and Exchange Commission of Pakistan (SECP), and the Chairman of the Federal Board of Revenue (FBR). PVARA is tasked with licensing and regulating digital assets while protecting consumers, curbing illicit financial flows, and unlocking fintech opportunities in remittances, tokenised assets and digital payments for Pakistan’s 250 million people.
