Pakistan's crypto regulator invites crypto firms to get licensed, serve 40 million local users
Quick Take
- The Pakistan Virtual Assets Regulatory Authority (PVARA), formed in July, has called on global crypto firms to apply for local licenses to serve Pakistan’s 40 million digital asset users.
- Only firms that have already been recognized by regulators in a major region, such as the U.S. or EU, may apply for a license.
- Pakistan has been warming up to crypto, and appointed Binance co-founder Changpeng Zhao to an advisory post earlier this year.
The Pakistan Virtual Assets Regulatory Authority (PVARA), the crypto regulator formed in July to formalize the South Asian country's burgeoning digital asset sector, has called on global crypto firms to apply for a local license and serve 40 million Pakistani crypto users.
The finance ministry issued a statement on Saturday calling on global crypto firms that have already been regulated in at least one major jurisdiction, such as the U.S., EU, or Singapore, to apply to receive a license to operate in Pakistan, according to local reports.
PVARA was created in July by the country's Virtual Assets Ordinance, which established a comprehensive regulatory framework for digital assets. Crypto firms are not permitted to operate in the country without a license, and applicants must meet minimum capital requirements, demonstrate robust security systems, and maintain compliance programs to become licensed. The firms' services must also comply with Sharia law, under the guidance of a committee of Islamic finance scholars.
"This [expression of interest] is our invitation to the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan,” said Bilal bin Saqib, chairman of PVARA and minister of state for crypto and blockchain, in a statement.
To apply, companies must provide detailed information about existing licenses, the firm's operations and technology, security protocols, and compliance history. Companies must also detail their plans to serve Pakistan's market.
The ministry's statement claims the country boasts "over 40 million users and an estimated annual trading volume exceeding $300 billion," and "represents one of the world’s most dynamic frontier opportunities." Pakistan has been warming toward crypto in recent months, forming a crypto council which includes Binance co-founder Changpeng "CZ" Zhao as a member, eyeing an expansion of Bitcoin mining, and planning a government-led strategic Bitcoin reserve.
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