Pakistan Invites Crypto Exchanges to Apply for Local Licenses in 2025
Pakistan Invites Crypto Exchanges to Apply for Local Licenses in 2025. Pakistan has officially invited cryptocurrency exchanges from around the world to apply for local licenses to operate in the country. The move comes under the newly established Pakistan Virtual Asset Regulatory Authority (PVARA), which is tasked with regulating virtual assets according to international standards.
The government’s initiative aims to formalize Pakistan’s digital economy and provide a safe environment for crypto trading. Leading exchanges and Virtual Asset Service Providers (VASPs) are encouraged to submit Expressions of Interest (EoI) to become licensed operators.
About PVARA and Virtual Assets Ordinance 2025
The Virtual Assets Ordinance 2025 (Ordinance No. VII of 2025) provides the legal framework for PVARA to operate. Released on July 8, 2025, and published in the Gazette of Pakistan on July 9, 2025, the ordinance allows PVARA to:
- License cryptocurrency platforms
- Supervise their operations
- Ensure compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations
- Enforce strong cybersecurity standards
PVARA aligns with international bodies like the Financial Action Task Force (FATF), IMF, and World Bank, ensuring Pakistan’s crypto sector meets global standards.
Why Pakistan Wants Crypto Partners
The Finance Ministry highlighted Pakistan’s growing crypto market as one of the largest untapped opportunities in the world. Key points include:
- Over 40 million crypto users in Pakistan
- Annual trading volumes of around $300 billion
- Rapid adoption despite regulatory challenges
Bilal Bin Saqib, Chairman of PVARA and Minister of State for Crypto and Blockchain, emphasized:
“This EoI is our invitation to the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan.”
Who Can Apply for Crypto Licenses?
Eligibility for licensing is strictly for VASPs and crypto exchanges that are already licensed under recognized international regulations. Some of the acceptable regulators include:
- United States Securities and Exchange Commission (SEC)
- United Kingdom Financial Conduct Authority (FCA)
- European Union’s VASP framework
- UAE Virtual Assets Regulatory Authority
- Monetary Authority of Singapore (MAS)
Applicants must also prove compliance with:
- AML (Anti-Money Laundering)
- CFT (Counter-Terrorism Financing)
- KYC (Know Your Customer) standards
This ensures only trusted and globally recognized platforms operate in Pakistan.
Strict Guidelines for Application
Crypto exchanges and VASPs need to follow strict rules while submitting their EoI:
- Company Profile – Detailed information about the company, services, and operations.
- Licensing Details – Include information about international licenses held and the regulatory authorities.
- Services Offered – Trading, custody, technology infrastructure, and security protocols.
- Assets Under Management – Full details of the company’s assets.
- Revenue & Compliance History – Past performance, financials, and legal compliance.
- Business Proposal – Detailed plan of operations in Pakistan.
Applications must be submitted in PDF format to the specified email with the subject line:
“EoI VASP Licensing – [Company Name]”
Applications will be approved on a rolling basis, ensuring quick evaluation of qualified platforms.
Role of PVARA in Pakistan’s Crypto Ecosystem
PVARA is an autonomous federal body governed by a multi-stakeholder board, including:
- Governor of the State Bank of Pakistan
- Chairman of the Securities and Exchange Commission of Pakistan (SECP)
- Chairman of the Federal Board of Revenue (FBR)
The authority is mandated to:
- Prevent illicit financial activities
- Protect consumers and investors
- Unlock opportunities in fintech, remittances, and tokenized assets
- Encourage Shariah-compliant digital innovation through regulatory sandboxes
Pakistan’s Crypto Market Growth
Despite previous regulatory bans, Pakistan has shown rapid crypto adoption:
- Ranked #3 in the Chainalysis 2025 Global Crypto Adoption Index
- Climbed six spots in global ranking due to widespread use
- Significant user base with increasing trading volumes
Bilal Bin Saqib stated:
“Even under a ban and without a regulator, Pakistan hit #3 in crypto adoption. The goal is to create a blueprint for how digital assets should be embraced.”
This demonstrates Pakistan’s potential as a leading crypto market in South Asia.
Benefits of Local Licensing for Crypto Exchanges
By obtaining a local license in Pakistan, crypto exchanges can enjoy multiple advantages:
- Legal Recognition – Operate under Pakistan’s regulatory framework.
- Trust & Transparency – Enhance reputation among local users.
- Market Expansion – Access to millions of crypto users in Pakistan.
- Compliance Assurance – Ensure adherence to AML, CFT, and KYC standards.
- Regulatory Guidance – Work under PVARA supervision to avoid legal risks.
Local licensing also promotes consumer protection and prevents fraudulent crypto activities.
How to Apply for Crypto Licenses in Pakistan
Crypto exchanges interested in operating in Pakistan must:
- Prepare Full Documentation – Company profile, licensing history, services, financials.
- Ensure Global Compliance – AML, CFT, KYC, and cybersecurity standards.
- Submit EoI – Email PDF to the specified PVARA contact with proper subject line.
- Wait for Approval – Applications reviewed on a rolling basis.
Early submissions may receive priority approval, making it beneficial to apply promptly.
International Standards in Pakistan’s Crypto Regulations
PVARA’s licensing framework follows global best practices, including:
- AML & CFT Regulations – Preventing money laundering and terrorism financing.
- Know Your Customer (KYC) – Ensuring proper identification of users.
- Cybersecurity Frameworks – Protecting platforms and users from digital attacks.
- International Licensing Recognition – Only reputable exchanges with global licenses can apply.
This ensures that Pakistan becomes a trusted hub for crypto trading in the region.
Key Features of the Virtual Assets Ordinance 2025
The ordinance provides clear guidelines and authority powers, including:
- Authority to license and regulate crypto platforms
- Right to supervise operations
- Enforcement of compliance and security standards
- Ability to penalize non-compliant platforms
This legal framework ensures that Pakistan’s digital economy grows safely and sustainably.
PVARA’s Vision for Pakistan’s Digital Economy
PVARA aims to:
- Build a transparent and inclusive digital financial system
- Attract global crypto exchanges to invest in Pakistan
- Facilitate fintech innovation
- Promote Shariah-compliant crypto solutions
- Create jobs and economic growth through digital assets
The authority envisions Pakistan as a regional leader in crypto adoption and innovation.
Why Global Crypto Exchanges Should Consider Pakistan
Several factors make Pakistan an attractive destination for crypto exchanges:
- Massive User Base – Over 40 million active crypto users.
- High Trading Volume – Around $300 billion annually.
- Regulatory Clarity – Legal framework provided under PVARA.
- Emerging Digital Economy – Opportunities in remittances, tokenization, and fintech.
- International Compliance – Licensing requires global standard adherence, ensuring credibility.
By entering Pakistan, exchanges can tap into one of the fastest-growing markets in South Asia.
How Pakistan Compares Globally in Crypto Adoption
- Ranked #3 globally in 2025 by Chainalysis
- Outpaced several developed countries in user adoption
- Shows strong potential for investment in blockchain and crypto sectors
Pakistan’s regulatory steps are designed to match global standards, attracting trusted international exchanges.
Future Prospects of Crypto in Pakistan
The introduction of local licensing opens new opportunities for Pakistan:
- Increased crypto trading security
- Enhanced foreign investment
- Promotion of tokenized financial products
- Growth of fintech startups and innovation
- Integration of blockchain in traditional finance
This could transform Pakistan into a digital finance hub in South Asia.
Steps for VASPs to Get Licensed
VASPs and crypto exchanges must:
- Verify International Licenses – Only recognized licenses accepted.
- Comply with AML & KYC Standards – To ensure a secure market.
- Prepare EoI Document – Including services, technology, and compliance details.
- Submit via Email in PDF – Clearly marked subject line for easy processing.
- Await Review – PVARA will evaluate applications on a rolling basis.
Licensed platforms will be legally recognized and eligible to operate nationwide.
FAQs About Pakistan’s Crypto Licensing Program
Q1: Who can apply for crypto licenses in Pakistan?
A1: Only crypto exchanges and VASPs licensed under recognized international authorities.
Q2: What standards must applicants follow?
A2: AML, CFT, KYC, and cybersecurity frameworks are mandatory.
Q3: How should the EoI be submitted?
A3: In PDF format via email, with subject line “EoI VASP Licensing – [Company Name]”.
Q4: Will applications be reviewed immediately?
A4: Yes, PVARA will approve applications on a rolling basis.
Q5: What benefits do licensed exchanges get?
Legal recognition, market access, consumer trust, and regulatory guidance.
Conclusion
Pakistan’s invitation for global crypto exchanges to apply for local licenses marks a historic step in building a regulated digital economy. With the Virtual Assets Ordinance 2025 and the establishment of PVARA, the country is providing a clear framework for international VASPs to operate safely and transparently.
