Pakistan Cracks Down on Unlicensed Crypto Firms with Tight Deadline

Pakistan has launched its licensing portal for virtual asset service providers (VASPs), giving existing firms a tight deadline to get compliant or face criminal consequences.

The Pakistan Virtual Assets Regulatory Authority (PVARA) has finalized regulations and opened the portal on August 22, requiring VASPs to submit No-Objection Certificate applications by September 5. The deadline applies to firms that were active before March 5, when the Virtual Assets Act took effect.

The new framework covers 10 distinct categories of virtual asset activities and imposes standards around governance, prudential requirements, and cybersecurity practices. Licensed providers must segregate client assets from their own and obtain explicit consent for lending or staking customer funds.

PVARA Chairman Bilal bin Saqib framed the licensing regime as a fundamental shift from an unregulated market to a structured, consumer-protective system designed to bring virtual assets into Pakistan's formal economy.