PVARA Completes Pakistan’s Virtual Asset Framework, Opens Licensing Portal

Virtual Asset Framework Completion Marks a Major Shift in Pakistan’s Approach to Digital Assets

Pakistan’s Virtual Assets Regulatory Authority (PVARA) has completed a new regulatory framework for the country’s digital asset sector by opening its licensing portal for virtual asset service providers. This move marks a significant shift in Pakistan’s approach to virtual assets, moving from a standing prohibition to a regulated licensing system.

The new framework creates 10 license categories for businesses offering different virtual asset services. These categories cover exchanges, custody, broker-dealer services, advisory, lending and borrowing, and derivatives. They also include asset management, transfer and settlement, issuance, and mining-related services. Each category comes with specific rules for business conduct, financial controls, technology, and AML/CFT compliance.

The regulations also set requirements for providers operating within Pakistan’s virtual asset market. Existing operators now face a key deadline of 5th September 2026. Under Section 70 of the Act, they must submit an NOC application by that date. Operators that fail to apply by the deadline must stop providing virtual asset services. Continuing operations without submitting an application will be treated as an offense.

PVARA Chairman and Minister of State Bilal Bin Saqib said the new rules bring legal protection to users. He said licensed providers must separate customer assets from their own holdings. Providers also cannot lend or pledge customer assets without written consent. These requirements will become legal obligations rather than promises made by platforms.

The licensing process will follow two stages for new applicants. Businesses planning to incorporate in Pakistan can first enter a sandbox or seek an NOC under Section 19. After incorporation, applicants can move forward with a full license. Transitional operators, however, must submit their NOC applications by 5th September 2026. All applicants can submit their applications through PVARA’s licensing webpage.

Licensed providers will also gain access to Pakistan’s formal banking system. The State Bank of Pakistan opened that route through Circular No. 10 of 2026. Issued on 14 April 2026, the circular allows regulated banks to serve PVARA-licensed virtual asset providers. It also allows banks to open segregated client money accounts for these providers. This replaces the restriction that had remained in place since 2018.

The regulations follow a public consultation held from 11 June to 2 July 2026. PVARA also held a public stakeholder webinar during the consultation process. The authority has moved quickly to build the new framework. Parliament established PVARA as a permanent statutory body in March 2026. It then secured banking access for licensed providers in April. Now, it has completed the licensing framework after public consultation and regulatory approval.

The changes mark a major shift in Pakistan’s approach to virtual assets. The country has moved from a standing prohibition toward a regulated licensing system within months.