Crypto operators given September 5 deadline to seek NOCs

The Pakistan Virtual Assets Regulatory Authority (PVARA) has set September 5, 2026 as the deadline for existing virtual asset service providers (VASPs) to apply for no-objection certificates (NOCs. Failure to comply will result in the cessation of operations. The PVARA underscored that Pakistan's virtual asset licensing regime is now operational, having transitioned in just six months from primary legislation to regulations and an open licensing process.

The crypto assets sector has primarily been overseen by the Ministry of Finance, which spearheaded the launch of the Pakistan Crypto Council (PCC) and established the autonomous PVARA to handle licensing, compliance and digital asset policies. The State Bank has begun allowing regulated banks to open accounts for PVARA-licensed VASPs and their clients, replacing earlier restrictions on virtual currencies.

Licensed providers are required to maintain separate, non-remunerative rupee accounts for their customers to prevent fund commingling. Financial institutions must enforce stringent anti-money laundering (AML), know-your-customer (KYC) and risk-profiling measures. Bankers warn that investing in crypto assets is both highly risky and highly profitable due to the significant price fluctuations of cryptocurrencies.

Consequently, central banks worldwide remain cautious about regulating virtual assets. The State Bank has directed commercial banks to refrain from trading, investing in, or holding virtual assets with their own capital or customer deposits, confining their involvement to providing banking infrastructure and transaction monitoring for authorized operators.