Pakistan gives crypto firms until September 5 to secure a license or shut down

Pakistan’s crypto regulator has given virtual asset firms already operating in the country until September 5 to apply for a No Objection Certificate or stop offering services, as the Virtual Assets Act, 2026 formally takes effect.

According to PVARA’s official licensing guidance, the Virtual Assets Act, 2026 requires virtual asset service providers including exchanges, wallet operators, token issuers, custodians and investment platforms to obtain formal authorization before offering services.

The regulator says the framework is intended to establish a more accountable virtual asset market while strengthening consumer protection, cybersecurity and market integrity.

“The Virtual Assets Act, 2026 has been enacted, pursuant to which, Pakistan Virtual Asset Regulatory Authority (PVARA) has been established as the statutory authority responsible for the licensing, regulation, supervision and oversight of virtual asset activities in Pakistan.” — State Bank of Pakistan

Existing operators face PVARA license transition deadline

The new regime also establishes a transition process for companies that were already providing virtual asset services before March 5, 2026.

Under Section 70 of the Virtual Assets Act, those businesses must apply for a No Objection Certificate by September 5, 2026. Companies that fail to submit their applications by the deadline will be required to stop operating.

The NOC process is intended to provide existing businesses with a route toward a full PVARA license. PVARA’s official process requires applicants to submit corporate and business documents, obtain preliminary approval, complete registration with Pakistan’s Financial Monitoring Unit and establish a local entity before progressing to the full licensing stage.

The State Bank of Pakistan has separately confirmed that banks may open limited-purpose accounts for entities holding PVARA NOCs, allowing those companies to complete the formalities required to obtain a license. However, broader virtual asset-related banking activity is subject to the grant of a full license and compliance with applicable requirements.

The transition marks a significant change for businesses that previously operated without a dedicated licensing regime. It also gives existing providers a defined regulatory pathway rather than requiring them to exit the market immediately.

Activities covered by the PVARA license regime

The licensing framework covers a broad range of virtual asset activities. These include advisory services, broker-dealer operations, custody, exchanges, lending and borrowing, derivatives, asset management, transfers and settlement.

The framework also extends to the issuance of asset-referenced and fiat-referenced tokens, as well as certain mining-related virtual asset services. PVARA’s draft regulatory framework identifies multiple activity-specific categories, ranging from exchange and custody services to derivatives and mining.

Businesses seeking a PVARA license will be expected to meet a range of regulatory requirements. These include incorporation as a company in Pakistan, prescribed minimum paid-up capital, fit-and-proper assessments for directors and key personnel, anti-money laundering and counter-terrorist financing controls, cybersecurity systems and business continuity arrangements.

PVARA’s regulatory framework also places emphasis on customer protection, safeguarding client assets, technology resilience, risk management and ongoing compliance.

“The Virtual Assets Act, 2026 requires all Virtual Asset Service Providers to be licensed before offering services in Pakistan.” — Pakistan Virtual Asset Regulatory Authority

The requirements mean applicants will need to demonstrate not only that they have a viable business model, but also that their governance, compliance and technical systems can meet the regulator’s standards.

Two routes toward a PVARA license

The framework provides two principal routes for businesses seeking full authorization.

Companies developing innovative virtual asset products can initially enter PVARA’s regulatory sandbox. The controlled environment allows eligible businesses to test products and services under regulatory supervision before progressing toward a full PVARA license.

Existing operators, meanwhile, can use the NOC route. The process begins with preliminary regulatory approval, followed by AML registration and local incorporation before the company submits its final application for a PVARA license.

PVARA describes the NOC as preliminary approval rather than the final license. Its official guidance states that the NOC enables an applicant to proceed with the formal licensing process and complete requirements such as AML registration and local incorporation.

For the wider market, the introduction of the PVARA license framework brings cryptocurrency exchanges, custodians, brokers, token issuers and other virtual asset businesses into a formal regulatory structure.

The Virtual Assets Act, 2026 establishes PVARA as Pakistan’s dedicated federal authority for licensing, regulation and supervision of virtual assets and VASPs. The legislation also identifies investor protection, transparency, market integrity and measures against money laundering and terrorist financing among the objectives of the regulatory framework.

As Pakistan moves to implement the new system, businesses already operating in the sector face the immediate September 5 deadline for NOC applications, while new entrants must navigate the regulator’s application and compliance requirements before providing virtual asset services.

“The PVARA licensing portal is now accepting applications. Begin your NOC application process today.” — Pakistan Virtual Asset Regulatory Authority