Pakistan opens virtual asset licensing portal, sets September 5 deadline

August 21, 2026 (MLN): The Pakistan Virtual Assets Regulatory Authority (PVARA) has notified its licensing regulations and opened the licensing portal for virtual asset service providers (VASPs), completing the regulatory framework for licensing and supervision of the sector in Pakistan.

Issued under the Virtual Assets Act, 2026, the regulations establish 10 licence categories covering exchanges, custody, broker-dealer services, advisory, lending and borrowing, derivatives, asset management, transfer and settlement, issuance, and mining-related services.

Each category is subject to activity-specific conduct, prudential, technology and AML/CFT requirements.

Existing virtual asset service providers have until September 5, 2026, to submit their No-Objection Certificate (NOC) applications.

Under Section 70 of the Act, entities providing virtual asset services before the Act came into force must apply by the deadline or cease operations. Continuing operations without submitting an application after September 5 will constitute an offence.

PVARA Chairman and Minister of State Bilal Bin Saqib said the regulatory framework would provide legal protections for customer assets, including requirements for licensed providers to segregate customer holdings from their own assets and prohibitions on lending or pledging customer assets without written consent.

The licensing framework follows a public consultation conducted from June 11 to July 2, 2026, under reference PVARA/CON/001/2026, which also included a stakeholder webinar.

Licensing will follow a two-stage process. Applicants seeking to incorporate in Pakistan may enter a regulatory sandbox or first obtain an NOC under Section 19, followed by an application for a full licence after incorporation.

Transitional operators, however, must submit their NOC applications by September 5, 2026.

Licensed VASPs will also gain access to the formal banking system.

State Bank of Pakistan Circular No. 10 of 2026, issued on April 14, permits regulated entities to open accounts for PVARA-licensed VASPs, including segregated Client Money Accounts, replacing the prohibition that had been in place since 2018.

PVARA was established as a permanent statutory authority through an Act of Parliament in March 2026.

Within less than six months, the authority secured banking access for licensed providers, conducted public consultation and notified the licensing regulations, moving Pakistan from a prohibition-based approach toward an operational licensing regime for virtual assets.

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