Pakistan has taken a significant step towards embracing the global crypto market by inviting international crypto companies to apply for licenses. The Pakistani Virtual Asset Regulatory Authority (PVARA) has asked leading crypto firms to submit expressions of interest (EOIs) to enter the country’s digital asset market. This move is part of a new federal regime aimed at regulating and monitoring virtual asset service providers (VASPs) in the country.
Strict Entry Criteria
The PVARA has set strict criteria for companies interested in applying for licenses. Only companies that have already been licensed by recognized supervisory authorities, such as the US Securities and Exchange Commission (SEC), the British Financial Conduct Authority, and the Monetary Authority of Singapore, are eligible to apply. The submissions must include company profiles, existing licenses and jurisdiction, proposed services, technology and security standards, managed assets, income, compliance success balance, and a Pakistani business model.
The framework aims to prevent illegal fund flows while unlocking opportunities for fintech, remittances, and tokenization, including Sharia-compliant products via regulatory sandboxes. The PVARA, established under the Virtual Assets Ordinance in 2025, is responsible for licensing, regulating, and monitoring VASPs in line with standards defined by the Financial Action Task Force (FATF) and the International Monetary Fund (IMF).
Crypto Adoption in Pakistan
Pakistan has witnessed significant growth in crypto adoption, ranking third in the Chainalysis 2025 Global Crypto Adoption Index. The country has climbed six places, making it one of the fastest-growing crypto markets in the world. According to Bilal bin Saqib, Chairman of PVARA, “This EOI is our invitation to the world’s leading VASPs to build a transparent and integrative digital future for Pakistan.”
In May, Pakistan announced plans to establish a government-led Bitcoin Strategic Reserve. The country also aims to utilize 2,000 megawatts of excess electricity for Bitcoin mining and AI centers as part of an initiative listed by the Pakistan Crypto Council and supported by the Ministry of Finance. However, the International Monetary Fund (IMF) has expressed concerns about the plan to use excess electricity for crypto mining, rejecting a proposal to offer subsidized power to energy-intensive industries, including Bitcoin mining.
Conclusion
Pakistan’s decision to invite global crypto firms to apply for licenses marks a significant step towards regulating and growing the country’s digital asset market. With its strict entry criteria and focus on preventing illegal fund flows, the PVARA aims to create a transparent and secure environment for crypto companies to operate. As the country continues to grow in crypto adoption, it will be interesting to see how the regulatory framework evolves. For more information, visit https://cointelegraph.com/news/pakistan-invites-global-crypto-firms-to-apply-for-licenses?utm_source=rss_feed&utm_medium=rss_tag_regulation&utm_campaign=rss_partner_inbound
