Pakistan is moving closer to establishing a formal licensing regime for virtual asset service providers as the Pakistan Virtual Assets Regulatory Authority (PVARA) advances work on regulations for the country’s growing digital assets sector. PVARA Chairman and Minister of State Bilal Bin Saqib said the country is nearing the establishment of a comprehensive licensing framework, marking another major development in efforts to bring virtual asset-related businesses under a structured regulatory system. The framework is expected to focus on transparency, investor protection and regulatory oversight.
The licensing regime will apply to virtual asset service providers operating in Pakistan and is intended to establish clearer requirements for businesses offering services connected to digital assets. Under the Virtual Assets Act 2026, virtual asset service providers are required to obtain a licence before offering services in Pakistan. PVARA’s draft regulations are designed to operationalise this licensing framework following the No Objection Certificate stage that is already in effect. The authority has been consulting stakeholders from across the virtual assets industry, including exchanges, custodians, broker-dealers, token issuers, financial institutions, legal and compliance professionals, academics and members of the public.
The development comes as Pakistan works to establish a formal regulatory structure for virtual assets after years of uncertainty around the sector. PVARA has been designated as the authority responsible for licensing, supervising and regulating virtual assets and virtual asset service providers in the country. The regulatory framework is expected to provide clearer rules for businesses operating in the digital assets market while giving regulators greater oversight of their activities. This includes creating mechanisms through which service providers can be assessed and supervised under defined regulatory requirements.
Investor protection and transparency are among the key considerations behind the emerging licensing framework. A formal licensing system can give regulators greater visibility over businesses providing virtual asset services while establishing requirements for companies seeking to operate within the regulated market. The regulatory process also has implications for compliance, as virtual asset businesses will need to meet applicable requirements before they can operate under the licensing regime. PVARA’s ongoing work therefore represents not only an effort to formalise the sector but also to create a regulatory environment in which digital asset activity can be monitored through established oversight mechanisms.
The move toward a licensing regime represents a significant stage in Pakistan’s development of its virtual assets regulatory framework. PVARA is continuing to work on the regulations required to transition from the current framework toward a fully operational licensing system for virtual asset service providers. As the rules progress toward finalisation, the framework could provide greater clarity for exchanges and other digital asset businesses seeking to operate in Pakistan while establishing clearer expectations around regulatory compliance and investor protection. The latest development indicates that Pakistan is moving closer to a more structured and formally supervised virtual assets market.
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