Pakistan opens crypto licensing portal, sets Sept. 5 deadline for existing firms
Pakistan’s Virtual Assets Regulatory Authority has opened its licensing portal and begun enforcing new rules for crypto exchanges and other virtual asset service providers. Firms operating in Pakistan on or before March 5 must apply for a no-objection certificate by Sept. 5 or stop operating; continuing without applying will be an offense. The framework shifts Pakistan’s crypto regime from legislation to implementation and requires both domestic and foreign VASPs to enter licensing, use a sandbox for testing, or exit the market. Covered activities include exchanges, custody, brokerage, lending, derivatives, asset management, token issuance, and mining-related services. Licensed firms must segregate customer assets, avoid using them without consent, and meet standards for governance, cybersecurity, operational resilience, market conduct, and AML/CFT compliance. The rules follow a public consultation and provide two paths: sandbox testing or an NOC route before local incorporation. The State Bank has also allowed banks to service licensed VASPs.
