Pakistan has formally begun issuing licences for cryptocurrency exchanges, a move that signals a major shift in how the country approaches its digital finance ecosystem. The Pakistan Virtual Assets Regulatory Authority has opened applications to global crypto service providers seeking to operate in the country under an official framework. This step brings Pakistan closer to internationally recognised standards and aims to channel one of the world’s largest unregulated markets into a transparent, monitored system. Analysts estimate that nearly 40 million users currently participate in Pakistan’s crypto market, with an annual trading volume nearing $300 billion, underscoring the importance of effective regulation.
Under the newly launched framework, companies interested in obtaining licences will be required to hold permits from credible global regulators, comply with strict Know Your Customer (KYC) protocols, and provide extensive corporate disclosures to ensure accountability. The authority has emphasised that its approach will simultaneously curb illicit financial activity and foster growth in the fintech sector. By putting these conditions in place, Pakistan aims to create an environment where cryptocurrency trading and blockchain-related services can thrive under transparent rules while safeguarding consumers and financial institutions from risk.
This licensing rollout follows steps taken earlier in the year to formalise oversight of digital assets. In March, the government established the Pakistan Crypto Council (PCC) to promote and integrate blockchain technology and digital assets into the national financial system. Bilal bin Saqib was appointed as Chief Advisor to the Finance Minister for crypto affairs to help shape the country’s crypto policies and ensure global best practices are incorporated. The PCC has been tasked with encouraging blockchain innovation and facilitating the adoption of cryptocurrency technologies within Pakistan’s economic framework, reflecting a coordinated policy approach across government agencies.
The Finance Division has stated that the PCC’s creation represents a significant step in Pakistan’s broader push toward digital finance. Chaired by Finance Minister Muhammad Aurangzeb, the council’s board includes the governor of the State Bank of Pakistan, the chairman of the Securities and Exchange Commission of Pakistan, the federal law secretary and the federal IT secretary, providing cross-sector leadership in regulating and guiding the digital asset sector. Analysts believe that these measures could attract greater foreign investment and enhance transparency, positioning Pakistan as a competitive market for cryptocurrency services and blockchain innovations in the region.
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