Pakistan Opens Doors to Global Crypto Firms Through PVARA Licensing Program
Pakistan marks a significant milestone in cryptocurrency regulation by inviting international firms to apply for licenses through its newly established Pakistan Virtual Asset Regulatory Authority (PVARA). On September 14, 2025, the PVARA announced it wants international crypto exchanges and service providers to submit applications.
PVARA, set up under the Virtual Assets Ordinance 2025, is tasked with licensing, regulating, and supervising VASPs in line with standards set by the Financial Action Task Force, International Monetary Fund, and World Bank. This regulatory framework positions Pakistan as a serious contender in the digital asset space while ensuring compliance with international standards.
PVARA License Requirements Transform Pakistan’s Crypto Landscape
The licensing process demands rigorous standards from applicants. Licensing will be open to firms already regulated in jurisdictions such as the US, UK, EU, UAE, or Singapore, with proven compliance on anti-money laundering, counter-terrorism financing, and know-your-customer requirements. This approach ensures only experienced and compliant firms enter Pakistan’s market.
PVARA limits eligibility to firms already licensed by recognized regulators to ensure experience, compliance, and consumer protection. Companies must demonstrate their track record in established markets before accessing Pakistan’s growing crypto ecosystem.
Global Crypto Firms Face a Comprehensive Application Process
The application process requires detailed documentation from interested firms. International VASPs must submit an Expression of Interest, including company profile, current licenses and jurisdictions, proposed services, technology, and security protocols. This thorough vetting process protects consumers while maintaining regulatory standards.
Applicants must demonstrate compliance with AML, CFT, and know-your-customer standards. Submissions are required to include company profiles, licensing details with jurisdictions and authorities, services offered — such as trading and custody — technology and security protocols. The comprehensive requirements ensure only qualified firms receive authorization.
Pakistan Crypto Regulation Timeline Sets Clear Expectations
The licensing process follows a structured timeline. According to Finance Ministry officials, the process will require at least another three months before licenses are officially issued to exchanges and Bitcoin mining companies. This timeframe allows thorough evaluation of applications while providing certainty to applicants.
The Virtual Assets Ordinance came into force on July 8, 2025, establishing PVARA with the power to license, regulate, and supervise virtual asset service providers across Pakistan. The regulatory framework creates a solid foundation for sustainable growth in the digital asset sector.
Sharia Compliance Requirements Shape Pakistan’s Crypto Market
Pakistan’s regulatory approach includes unique cultural considerations. The firms’ services must also comply with Sharia law, under the guidance of religious scholars. This requirement reflects Pakistan’s commitment to aligning cryptocurrency operations with Islamic principles.
It is also expected to enforce Shariah-compliant innovation using regulatory sandboxes. These sandboxes allow firms to test innovative solutions while ensuring compliance with regulatory and religious requirements.
Market Potential Drives International Interest in Pakistan Licenses
Pakistan presents substantial market opportunities for licensed firms. Crypto firms are not permitted to operate in the country without a license, and applicants must meet minimum capital requirements, demonstrate robust security systems, and maintain compliance programs to become licensed. These requirements create barriers to entry while ensuring market quality.
Pakistan has risen to occupy the third position in Chainalysis 2025 Global Crypto Adoption Index, climbing six spots. This rapid rise demonstrates the country’s growing appetite for digital assets and the potential returns for compliant operators.
PVARA Governance Structure Ensures Regulatory Oversight
The authority operates under strong institutional backing. PVARA’s governing board includes heads of key institutions such as the State Bank of Pakistan and the Securities and Exchange Commission. This multi-institutional approach ensures comprehensive oversight across different aspects of financial regulation.
The regulatory body brings together expertise from various sectors. It includes top officials from Pakistan’s central bank, securities commission, and tax authority. This collaborative structure enhances regulatory effectiveness while reducing compliance complexity for firms.
Conclusion
Pakistan’s PVARA licensing program represents a strategic move to establish the country as a regional crypto hub while maintaining strict compliance standards. The comprehensive application process, Sharia compliance requirements, and international standards alignment create a robust framework for sustainable growth. This regulatory clarity provides the foundation for Pakistan’s digital asset market to flourish under proper oversight.
