Pakistan invites global service providers to apply for crypto licences

ISLAMABAD: Pakistan has formally initiated the licencing process for cryptocurrency exchanges, marking a major milestone for the country’s digital finance sector.

In March 2025, the Pakistan Crypto Council (PCC) was launched to regulate and integrate blockchain technology and digital assets into the financial landscape.

According to the Finance Ministry, the council will play a pivotal role in formulating policies, fostering innovation, and ensuring a secure and forward-looking approach to crypto adoption in Pakistan.

Sources said the Pakistan Virtual Assets Regulatory Authority (PVARA) has invited global crypto service providers to submit applications for licences.

Earlier, the Senate Standing Committee on Finance and Revenue proposed barring members and employees of the PVARA from investing or trading in virtual assets, as part of its review of the government’s Virtual Assets Bill 2025.

In a meeting held on Wednesday, the committee also recommended shifting the regulatory authority from the Cabinet Division to the Finance Division to ensure stronger oversight. It further proposed clear eligibility criteria for PVARA’s leadership, requiring at least five years of relevant experience and setting an age cap of 55 years for members and the chairman.

Experts estimate that Pakistan’s crypto market currently has nearly 40 million users and an annual trading volume of about $300 billion, making it one of the largest unregulated markets in the world. The PVARA aims to regulate this sector in line with international standards and to address financial challenges.

The authority clarified that companies seeking to operate in Pakistan must first obtain licences from global regulators, comply with stringent “Know Your Customer” (KYC) standards, and provide detailed corporate information.

It added that the framework also focuses on preventing illegal financial activities while promoting the growth of the fintech sector. Experts believe the move is expected to boost foreign investment in Pakistan and enhance transparency in the crypto market.