Pakistan sets September 5 deadline for crypto platforms to comply

Pakistan has mandated crypto platforms to comply with its new licensing regime by September 5 or cease operations. The Pakistan Virtual Assets Regulatory Authority (PVARA) launched a licensing portal on August 22, following the issuance of final regulations for virtual-asset services. PVARA Chairman Bilal Bin Saqib stated that the new rules will formalize the market, protect consumers, and establish a foundation for future financial infrastructure. Providers operating in Pakistan since the Virtual Assets Act took effect on March 5 must apply for a no-objection certificate (NOC) to proceed towards full licensing. Timely applications allow existing providers to continue services while PVARA reviews their filings, although interim limits may be imposed. Firms failing to apply by the deadline must halt affected services, with continued operation without an application deemed an offense. The regulations do not ban crypto but create a comply-or-exit framework for exchanges and custodians targeting Pakistani users. PVARA defines a provider as in scope if it markets or onboards users in Pakistan or supports local payment methods. Receiving an NOC does not equate to a full license but allows firms to meet compliance requirements. Binance and HTX have already received NOCs and can apply directly for full licenses. PVARA has also introduced a regulatory sandbox for testing new products. The impact on customers will depend on their platform's regulatory compliance, with nonfilers required to stop services without a specified shutdown process.

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