Pakistan has requested that international crypto firms apply for licences under the Pakistan Virtual Asset Regulatory Authority (PVARA).
With strict criteria and compliance standards, exchanges and virtual asset service providers (VASPs) now have to submit Expressions of Interest (EoIs) to enter the country’s digital asset market. The EoI is an invitation for VASPs to partner with PVARA and create a transparent and inclusive digital financial landscape for Pakistan.
Pakistan’s entry criteria
PVARA, set up under the Virtual Assets Ordinance 2025, is in charge of licensing, regulating, and supervising VASPs in accordance with standards set by the Financial Action Task Force (FATF), International Monetary Fund (IMF), and World Bank.
Eligibility for licences will be limited to firms that are already recognised by regulators, including the US SEC, the UK FCA, the EU’s VASP framework, the UAE’s Virtual Assets Regulatory Authority, and the Monetary Authority of Singapore.
Submissions must include company profiles, existing licences services proposed, including trading, custody, and payments, assets under management, revenues, and security standards, as well as compliance track record and a Pakistan-specific business model. This framework aims to curb illicit finance while offering more fintech, remittance, and tokenisation opportunities for Shariah-compliant products via regulatory sandboxes.
The move comes as Pakistan surged to third place in Chainalysis’ 2025 Global Crypto Adoption index, emerging as a fast-growing crypto market. In May 2025, the country also announced its plans to establish a government-based Bitcoin Strategic Reserve, reflecting Pakistan’s pro-crypto regulatory approach. It also used 2,000 megawatts of surplus electricity to mine for Bitcoin and AI centres as part of an initiative led by the Pakistan Crypto Council and supported by the Ministry of Finance.
Yet, in July, the IMF warned against the country’s plan to use surplus electricity for crypto mining, rejecting a proposal to offer subsidised power to energy-intensive industries, including Bitcoin miners.
