Pakistan’s new crypto regulator, the Pakistan Virtual Assets Regulatory Authority (PVARA), has asked regulated global crypto firms to apply for local licenses so they can serve the country’s 40 million crypto users, the finance ministry said on Saturday.
The call targets companies already licensed in at least one major market, such as the U.S., EU, or Singapore. PVARA was established in July under the Virtual Assets Ordinance to create a legal framework for digital assets.
License push
Firms that want to operate in Pakistan must meet capital rules, show strong security and compliance systems, and make their services Sharia-compliant under a panel of Islamic finance scholars.
The finance ministry’s statement made clear that unlicensed crypto firms cannot do business in Pakistan. The government wants to bring global players into a regulated market. Officials hope this will protect users and formalise the industry.
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Companies must submit proofs of existing licenses, detail their operations and tech stacks, explain security protocols, and show compliance histories. They must also set out plans for how they will serve Pakistan’s market.
Regulatory rules
PVARA’s rulebook includes minimum capital criteria. It also requires firms to keep topmost security controls and active compliance programs. Firms must get these tests to get a license approved.
A special committee of Islamic finance scholars will review services for Sharia compliance. That step reflects Pakistan’s aim to align digital finance with local religious and legal norms.
Market size and strategy
The ministry said Pakistan has over 40 million crypto users and an estimated annual trading volume above $300 billion. It described the market as a major frontier opportunity.
The government has moved quickly to shape that opportunity. In recent months, it formed a crypto council and invited industry leaders to advise on policy. Changpeng Zhao, the co-founder Binance, is listed as a member of that council.
Bilateral ties and mining plans
Pakistan has also been building ties abroad on crypto matters. Officials met with President Nayib Bukele of El Salvador, following talks between Bilal bin Saqib, Pakistan’s head of the crypto council, and a special assistant to Pakistan’s prime minister on crypto and blockchain. The meetings signal interest in broader cooperation on Bitcoin and related topics.
IMF response
Not all plans got a green light. Pakistan proposed subsidised electricity for large-scale Bitcoin mining, but the International Monetary Fund rejected the idea, according to the Secretary of Power, Dr. Fakhray Alam Irfan.
The IMF’s stance was shared during a session of the Senate Standing Committee on Power. The refusal means mining expansion will need other incentives or funding paths.
What firms must show?
Applicants must give detailed evidence of where and how they are already regulated. They must explain their technology and operations in plain terms.
They must describe security measures, such as how customer funds are kept safe. They must also show records of compliance actions and any past issues. The goal is to make it easy for regulators to vet them.
What happens next?
PVARA will review applications and decide on licenses under the new law. The process will test how fast the regulator can work and how open it will be to outside firms.
Observers will watch whether approvals come quickly or slowly, and how strictly the Sharia checks are applied.
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