Pakistan Launches Crypto Licensing Regime With September 5 Deadline
Companies must register with PVARA before September 5, or they have to stop operating. The rules under the Virtual Assets Act 2026 also cover custody, exchanges, and derivatives.
Key Takeaways
- Pakistan is giving digital asset companies until September 5 to register under its new crypto regime.
- Companies without an application for a no-objection certificate must stop operating.
- The Virtual Assets Act 2026 brings 11 crypto activities under supervision, including custody, exchange, broker-dealer, and derivatives.
Pakistan has opened its new crypto regime and is giving digital asset companies until September 5 to register. Anyone who does not submit an application for a no-objection certificate must stop operating. That marks a clear step toward formal regulation of the crypto sector.
Strict Requirements for Companies
The Virtual Assets Regulatory Authority, or PVARA, says license holders must follow strict operational and security standards. That includes protecting customer funds, strong cybersecurity, clear disclosures, and transparent operations.
The rules under the Virtual Assets Act 2026 cover 11 types of crypto activities. These include custody, exchanges, broker-dealer, and derivatives. For companies, that means not just trading, but also storage and other services, will come under supervision.
From Ban to Oversight
The new registration process follows a broader policy shift in Pakistan. In April, the State Bank of Pakistan lifted an eight-year ban on banking services for crypto companies, allowing banks to open accounts for licensed firms. Banks are still not allowed to invest in crypto, trade it, or hold crypto themselves.
According to the authorities, the move fits into a broader push to bring formal regulation to digital assets. The Virtual Assets Act 2026, passed in March, made PVARA the permanent federal regulator and replaced the temporary authority from 2025. It also set out that unlicensed crypto activities can be punished with heavy fines and possible prison time.
Pakistan is not the only country trying to regulate the sector through licensing and oversight. In Taiwan, a law was recently passed that ties crypto providers to licenses, custody requirements, and tough penalties, as described in the new Taiwanese crypto law.
Important for the Region
For European crypto readers, Pakistan shows how quickly a large market can move from loose practices to formal oversight. The combination of bank access, registration requirements, and enforcement could matter for companies that operate internationally or offer services in multiple jurisdictions. The market in Pakistan is also large enough to give that shift extra weight, with an estimated 40 million users in April 2026.
