Islamabad, Pakistan — August 21, 2026: 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 virtual asset sector in Pakistan.
Issued under the Virtual Assets Act, 2026, the regulations establish 10 licence categories covering virtual asset exchanges, custody, broker-dealer services, advisory, lending and borrowing, derivatives, asset management, transfer and settlement, issuance, and mining-related services.
Each licence category will be subject to activity-specific requirements covering conduct, prudential standards, technology, and anti-money laundering and counter-terrorism financing (AML/CFT) controls.
Existing VASPs Given September 5 Deadline
Existing virtual asset service providers have until September 5, 2026, to submit applications for a No-Objection Certificate (NOC).
Under Section 70 of the Virtual Assets Act, entities that were providing virtual asset services before the Act came into force must submit their applications by the deadline or cease operations. Continuing to operate without submitting an application after September 5 will constitute an offence.
Customer Asset Protection Introduced
PVARA Chairman and Minister of State Bilal Bin Saqib said the new regulatory framework would establish legal protections for customer assets.
Licensed providers will be required to segregate customer assets from their own holdings, while lending or pledging customer assets will be prohibited without the customer’s written consent.
The licensing regulations follow a public consultation conducted between June 11 and July 2, 2026, under reference PVARA/CON/001/2026, which also included a stakeholder webinar.
Two-Stage Licensing Process
The licensing framework introduces a two-stage process for new applicants seeking to establish operations in Pakistan.
Applicants may enter a regulatory sandbox or obtain an NOC under Section 19 before incorporating in Pakistan. Following incorporation, applicants can proceed with an application for a full licence.
Transitional operators already providing virtual asset services, however, must submit their NOC applications by September 5, 2026.
Licensed VASPs to Gain Banking Access
A key development under the new framework is access to Pakistan’s formal banking system for licensed VASPs.
Under State Bank of Pakistan Circular No. 10 of 2026, issued on April 14, regulated financial institutions are permitted to open accounts for PVARA-licensed VASPs, including segregated Client Money Accounts.
The measure replaces the prohibition on banking access for virtual asset businesses that had been in place since 2018.
From Prohibition to Regulation
PVARA was established as a permanent statutory authority through an Act of Parliament in March 2026.
In less than six months, the authority has secured banking access for licensed virtual asset providers, conducted a public consultation and notified the licensing regulations, marking a significant shift in Pakistan’s approach to virtual assets.
The country has now moved from an eight-year prohibition-based framework toward an operational licensing and supervision regime, creating a regulated pathway for virtual asset businesses to operate in Pakistan.
PVARA is calling on virtual asset service providers to get licensed, get compliant and build within Pakistan’s emerging regulated digital-asset ecosystem.
