Pakistan's Crypto Regulator Grants Preliminary Approval to Major Exchanges

Pakistan has made significant strides in regulating its cryptocurrency market, with the passage of the Virtual Assets Act in 2026. The law establishes a dedicated regulator, the Pakistan Virtual Assets Regulatory Authority (PVARA), to license and supervise virtual asset service providers.

The PVARA's primary responsibility is to ensure that exchanges, custodians, wallet providers, token issuers, brokers, and advisors comply with the Act's requirements. This includes obtaining a full operating license before offering services in or from Pakistan.

Currently, no exchange has been granted a full license, but Binance, HTX, and Bitget have received No Objection Certificates (NOCs), which allow them to register with Pakistan's anti-money-laundering system and set up local companies. However, the NOCs are not licenses and do not permit exchanges to fully operate in Pakistan.

The law imposes harsh penalties on businesses that operate as unlicensed virtual asset service providers, including fines of up to PKR 50 million and imprisonment for up to five years. The Act also prohibits promoting or advertising unauthorized virtual assets, with penalties of up to PKR 25 million and imprisonment for up to three years.