Pakistan has taken a significant step toward formalizing its digital assets market by inviting global cryptocurrency exchanges and Virtual Asset Service Providers (VASPs) to apply for licensing under the newly introduced Virtual Assets Ordinance, 2025. The announcement was made by the Pakistan Virtual Asset Regulatory Authority (PVARA), which has been tasked with creating a secure, transparent, and globally aligned digital assets ecosystem.
According to PVARA, the framework has been developed in line with international regulatory benchmarks, particularly the guidelines of the Financial Action Task Force (FATF), International Monetary Fund (IMF), and World Bank. By implementing these global standards, Pakistan aims to establish a robust environment for digital finance that encourages innovation while ensuring strong safeguards against money laundering, terrorism financing, and cyber risks.
The country already represents one of the largest untapped crypto markets in the world, with PVARA estimating that more than 40 million users in Pakistan are engaged with digital assets. The annual trading volume is projected to exceed $300 billion, highlighting both the demand and the scale of opportunities for licensed exchanges.
The licensing process is open to exchanges and service providers that are currently regulated in leading jurisdictions such as the United States, United Kingdom, European Union, United Arab Emirates, and Singapore. Specifically, entities regulated by the US Securities and Exchange Commission (SEC), UK Financial Conduct Authority (FCA), EU VASP framework, UAE Virtual Asset Regulatory Authority (VARA), or Monetary Authority of Singapore (MAS) are eligible to apply, provided they demonstrate compliance with strict anti-money laundering (AML), counter-terrorism financing (CTF), and cybersecurity protocols.
Bilal bin Saqib, Minister of State for Crypto and Blockchain and Chairman of PVARA, emphasized the government’s commitment to building an inclusive digital financial future. He noted that welcoming established global players is part of a broader vision to position Pakistan as a regional hub for blockchain innovation, fintech growth, and secure digital asset transactions.
“By inviting the world’s leading crypto exchanges and VASPs to operate in Pakistan, we are opening doors to foreign investment, technological expertise, and greater financial inclusion for millions of Pakistanis,” said Saqib.
The application process is now open and submissions are being accepted on a rolling basis through PVARA’s headquarters in Islamabad. Exchanges and service providers seeking entry into Pakistan’s market are encouraged to submit comprehensive compliance and security documentation as part of their applications.
This development marks another milestone following the government’s recent launch of the National Digital Currency trial, signaling Pakistan’s rapid shift toward embracing digital financial transformation on multiple fronts.
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