Pakistan Opens Licensing Portal for Virtual Asset Service Providers

Pakistan's Virtual Assets Regulatory Authority (PVARA) has officially opened its licensing portal for companies offering virtual asset services in the country.

The regulatory framework covers various activities, including exchanges, custody, lending, derivatives, token issuance, and mining-related services. Companies operating without a no-objection certificate (NOC) after September 5 will be required to cease their activities in the Pakistani market.

PVARA has established two possible routes for companies: a NOC pathway for those in the process of local incorporation and a regulatory sandbox that allows firms to test products under PVARA supervision before applying for a full license. The regulation also requires licensed providers to keep client funds separate from their own assets.

The portal launch follows a public consultation held between June 11 and July 2, and the State Bank of Pakistan has allowed banks to offer accounts to licensed Virtual Asset Service Providers (VASPs), including segregated client money accounts.