Pakistan Opens Licensing Portal for VASPs Amid Stricter Regulations
Pakistan has opened its licensing portal for virtual asset service providers (VASPs), marking a significant step towards regulating the country's crypto market. The Virtual Assets Regulatory Authority (PVARA) launched the portal after notifying regulations governing VASPs, including exchanges, custody, and other services.
Existing firms providing virtual asset services must submit an application for a no-objection certificate (NOC) by September 5 or cease operations. Operating without submitting an application after this deadline will be considered an offense, PVARA stated in a press release.
The framework covers various activities, including exchanges, custody, broker-dealer services, lending, derivatives, asset management, token issuance, and mining-related services. VASPs can pursue an NOC before incorporating locally or enter a regulatory sandbox to test products under PVARA supervision.
According to the press release, licensed providers will be required to keep customer holdings separate from their own assets and cannot lend or pledge them without written consent. The framework also requires covering governance, market conduct, cybersecurity, operational resilience, and anti-money laundering and counter-terrorism financing controls.