ISLAMABAD: Pakistan has invited international cryptocurrency exchanges and virtual asset firms to apply for licences to operate in its domestic market, The News reported on Sunday.
The Pakistan Virtual Asset Regulatory Authority (PVARA), created under the Virtual Assets Ordinance 2025, has issued a call for expressions of interest from global Virtual asset service providers (VASPs) to expand into the South Asian nation.
The move comes as the country seeks to align its oversight framework with standards set by the Financial Action Task Force, the International Monetary Fund (IMF) and the World Bank and looks to regulate its large pool of digital asset users.
Pakistan's crypto market is estimated to have more than 40 million users with an annual trading volume exceeding $300 billion, making it among the most active frontier markets for digital assets.
Under the new law, PVARA has been empowered to license, regulate and supervise VASPs, with rules covering anti-money laundering, counter-terrorism financing and cybersecurity.
"This EoI is our invitation to the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan," Bilal bin Saqib, chairperson of PVARA and minister of state for crypto and blockchain, said in a statement.
Licencing will be open to firms already regulated in jurisdictions such as the US, UK, EU UAE or Singapore, with proven compliance on anti-money laundering, counter-terrorism financing and know-your-customer requirements.
Applicants are required to submit details of their licences, compliance history, operations and proposed business models for Pakistan. Submissions will be accepted on a rolling basis, the authority said.
The move builds on efforts by the government-backed Pakistan Crypto Council, set up in March to drive virtual asset adoption.
The PCC is exploring bitcoin mining using surplus energy, has appointed Binance founder Changpeng Zhao as a strategic adviser and plans to establish a state-run bitcoin reserve.
It has also held talks with US-based crypto firms, including the Trump-linked World Liberty Financial.
— With additional input from Reuters