Pakistan has extended an invitation to global cryptocurrency exchanges and virtual asset service providers (VASPs) to apply for licenses to operate within its borders. This move signifies a major step towards regulating and formalizing the country's rapidly expanding digital asset market. The Pakistan Virtual Asset Regulatory Authority (PVARA), established under the Virtual Assets Ordinance 2025, issued a call for expressions of interest (EoI) from international VASPs on Saturday.

Bilal bin Saqib, the chairperson of PVARA and minister of state for crypto and blockchain, stated that this EoI is an invitation to the world's leading VASPs to collaborate in building a transparent and inclusive digital financial future for Pakistan.

This initiative aligns Pakistan's oversight framework with international standards set by organizations like the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank. It also aims to provide a secure framework for fintech innovation while curbing illicit finance. PVARA is empowered to license, regulate, and supervise VASPs, ensuring robust anti-money laundering (AML), counter-terrorism financing (CFT), and cybersecurity measures. The regulatory framework also intends to promote Shariah-compliant innovation through regulatory sandboxes.

Pakistan's crypto market is estimated to have over 40 million users, with an annual trading volume exceeding $300 billion, making it a highly active emerging market for digital assets.

Eligibility for licensing is limited to firms already regulated in jurisdictions such as the United States, the United Kingdom, the European Union, the United Arab Emirates, or Singapore. These firms must demonstrate proven compliance with anti-money laundering, counter-terrorism financing, and know-your-customer (KYC) requirements.

Applicants are required to submit comprehensive details, including company profiles, licensing information, operational overviews, compliance histories, and proposed business models specific to Pakistan. Submissions will be accepted on a rolling basis.

The PVARA deliberated on withdrawing the State Bank of Pakistan's (SBP) 2018 ban on virtual currencies while setting out a roadmap for AI-driven risk management, licensing, and regulatory frameworks.