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Pakistan opens crypto licensing portal, sets Sept. 5 deadline for existing firms
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- DeepHorus
Pakistan has officially launched its crypto licensing portal and set a September 5 deadline for all existing virtual asset service providers to apply for a no-objection certificate. Companies providing crypto services in the country before March 5 must submit their applications by this date or cease operations, according to the nation's new regulatory authority.
This move follows the passage of Pakistan's Virtual Assets Act in March, which established the Virtual Assets Regulatory Authority as the statutory regulator. The framework transitions the country's crypto regulations from legislation into active enforcement, creating a clear pathway for domestic and international firms to operate legally.
The new regulations cover a wide range of activities, including exchanges, custody services, lending, derivatives, and token issuance. Licensed providers will be required to keep customer holdings separate from their own assets and must comply with strict rules on governance, cybersecurity, and anti-money laundering controls.
PVARA is offering two primary licensing routes: a no-objection certificate pathway for firms ready to incorporate locally, and a sandbox pathway for testing new products under supervision before seeking a full license. This structure is designed to attract both established operators and innovative startups to the regulated market.
Some major exchanges, including Binance and HTX, have already received preliminary NOCs. The State Bank of Pakistan has also enabled banks to provide segregated accounts for licensed providers, a crucial step for operational security and consumer protection.
Industry reactions suggest the clear regulatory pathway is a positive development for market integrity and investor confidence. However, the tight September 5 deadline presents an immediate compliance challenge for numerous existing service providers who must now navigate the formal application process swiftly.
Looking ahead, the successful implementation of this framework will be critical for Pakistan's goal of fostering a secure and competitive digital asset ecosystem. The authority will likely focus on processing the initial wave of applications while monitoring market conduct under the new rules.
