Crypto operators given September 5 deadline to seek NOCs

Karachi, Pakistan - The Pakistan Virtual Assets Regulatory Authority (PVARA) has given a September 5th deadline for virtual asset service providers (VASPs) to apply for no-objection certificates (NOCs. Failure to comply will result in the cessation of operations. Virtual assets and currencies have seen significant investments in Pakistan, despite low mass adoption.

The government and the State Bank have taken several steps to regulate the sector. The PVARA has been operating for only six months, swiftly transitioning from primary legislation to regulatory frameworks and an open licensing process. The Ministry of Finance spearheads the crypto assets sector, while the autonomous PVARA oversees licensing, compliance, and digital asset policies.

Pakistan is embracing the global digital asset economy with clear rules, regulatory oversight, and accountability. The State Bank has allowed regulated banks to open accounts for PVARA-licensed VASPs and their customers, requiring separate, non-remunerative accounts to prevent fund commingling. Banks must adhere to stringent anti-money laundering (AML), know-your-customer (KYC), and risk-profiling standards.

However, banks are prohibited from trading, investing, or holding virtual assets with their capital or customer deposits, with involvement limited to providing banking services for authorized operators.