Crypto Companies Can Now Apply for Licenses in Pakistan

Pakistan has launched a virtual asset licensing system, enabling firms to apply for regulatory clearance under the Virtual Assets Act of 2026. The Pakistan Virtual Asset Regulatory Authority (PVARA) is accepting applications for sandbox participation, No Objection Certificates and full VASP licenses. Under Section 70 of the Act, firms operating as virtual asset service providers before March 5, 2026 must apply for a No Objection Certificate by September 5, 2026 or shut down operations.

The licensing regime encompasses various services such as advisory, trading, custody, exchanges, lending, derivatives, asset management, transfers and settlement, token issuance, and mining-related services. Applicants for a full license must meet requirements like company registration, minimum capital, director and employee suitability checks, AML/CFT systems, cybersecurity, and business continuity plans.

Businesses can pursue a full license through either the sandbox route, where innovative firms test products before applying for a license, or the No Objection Certificate route, which involves provisional approval, regulatory compliance, local incorporation, and a final application for a VASP license.