Pakistan has formally opened its long-awaited virtual asset licensing regime, placing cryptocurrency businesses under regulatory oversight and giving companies already operating in the country until Sept. 5 to apply for authorization.

The Pakistan Virtual Assets Regulatory Authority activated its licensing portal after notifying regulations under the Virtual Assets Act of 2026. The step marks a significant shift toward a regulated digital asset market following years of uncertainty for crypto businesses operating in the country.

For firms already serving Pakistani users, the new portal turns the law into an immediate compliance deadline rather than a future policy goal. That matters because the rules now distinguish between businesses that move into the licensing process and those that must halt operations once the cutoff passes.

Deadline for Existing Operators

Under Section 70 of the law, virtual asset service providers that were operating when the legislation took effect must submit an application for a No-Objection Certificate (NOC) by Sept. 5, 2026.

Any firm that fails to apply by the deadline must stop providing virtual asset services, and continuing operations without submitting an application after that date will constitute an offense.

Scope of the New Framework

The regime covers 10 categories of virtual asset services, including:

• Cryptocurrency exchanges and custody services
• Broker-dealer and advisory services
• Lending, borrowing and derivatives
• Asset management, transfers and settlement
• Token issuance and mining-related activities

The rules also introduce requirements covering conduct, technology, prudential standards, and anti-money laundering and counter-terrorism financing controls.

That broad scope puts exchanges, custodians and other service providers under the same formal framework, which can matter for firms that have operated with limited regulatory clarity. It also gives the regulator a single structure for oversight rather than a patchwork of separate approvals.

Banking Access Adds Momentum

The licensing regime creates a formal path for regulated crypto businesses to access Pakistan's banking system. Under earlier measures from the State Bank of Pakistan, regulated financial institutions may provide accounts to licensed virtual asset service providers, including segregated client money accounts.

Businesses seeking to establish licensed operations in Pakistan follow a two-stage route: they can enter a regulatory sandbox or obtain an initial NOC before incorporating locally and applying for a full license.

The new rules also aim to strengthen protections for customers holding digital assets. Licensed providers must separate customer holdings from their own assets and cannot lend or pledge customer assets without written consent.

Pakistan's regulator has moved from legislation to operational licensing in less than six months. The government has presented the framework as a way to improve consumer protection while attracting investment and expanding opportunities linked to blockchain, stablecoins and tokenization.