Pakistan opens its cryptocurrency licensing portal from September 5

What are the requirements for Pakistan's new cryptocurrency licensing system?

Pakistan has opened a cryptocurrency company license application portal, requiring exchanges and other virtual asset service providers to enter the country's new regulatory framework by September 5, otherwise they will stop operating in the market. Pakistan's Virtual Assets Regulatory Authority said companies that have provided virtual asset services on or before March 5 must submit applications for no-objection certificates before the September deadline. Continuing operations without submitting an application within the time limit will be deemed illegal.

"The license application window has been officially opened, providing a clear path for companies to enter Pakistan's regulated virtual asset market and clarifying standards for consumer protection, governance, compliance and market integrity." The bureau said. This move marks the move from the legislative stage to the implementation stage of Pakistan's cryptocurrency rules. Domestic companies and overseas platforms that serve customers in Pakistan must now decide whether to establish regulated entities in the country or withdraw from the market.

The licensing system was introduced in March after the passage of the Virtual Assets Act, which established the Pakistan Virtual Assets Regulatory Authority as the statutory regulator for the industry. The regulatory framework covers 10 categories of cryptocurrency-related activities: consulting, broker-dealer services, custody, exchanges, lending, derivatives, asset management, transfer and settlement, token issuance, and mining-related services.

How do cryptocurrency companies get approval?

The Pakistan Virtual Assets Regulatory Authority provides two main channels for companies entering the regulatory system. Existing or potential service providers can apply for a no-objection certificate before establishing a local entity, while companies testing new products can apply through a "regulatory sandbox" under the agency's supervision. A no-objection certificate is not a final authorization, but a preliminary path to company registration and obtaining a full operating license.

Binance and HTX received preliminary no-objection certificates in December 2025, allowing them to start establishing local subsidiaries and prepare complete license applications. With detailed regulations announced, these applications can now move forward. The regulatory framework was finalized after public consultations from June 11 to July 2. Licensed service providers must separate customer assets from company assets and must not lend or mortgage customer assets without written consent. Companies must also meet requirements in areas such as governance, cybersecurity, operational resilience, market behavior, information disclosure, anti-money laundering controls and counter-terrorism financing procedures.

Note to Investors

The September 5 deadline draws a clear dividing line between platforms that are ready to operate under Pakistan supervision and platforms that are unwilling to meet local licensing requirements. For large exchanges, remaining in the market will increasingly require setting up local entities, investing in compliance costs and obtaining formal regulatory approval.

Why is banking channels so important to Pakistan's cryptocurrency market?

The licensing system is supported by adjustments to Bank of Pakistan rules. The State Bank of Pakistan has allowed banks to provide services to licensed virtual asset companies, including opening segregated accounts for customer funds. But banks themselves are still prohibited from investing, trading or holding crypto assets. This distinction allows regulated cryptocurrency companies to access traditional banking infrastructure while preventing commercial banks from directly dabbling in cryptocurrencies. This is expected to solve one of the main operational challenges cryptocurrency companies face in markets with uncertain regulations. Access to local bank accounts makes customer deposits, withdrawals, payroll payments, tax payments and company operations easier to manage, while also allowing regulators to better understand the flow of funds. For international exchanges, the banking channel also makes local registration more feasible. When platforms can connect regulated crypto services with domestic payment channels rather than relying entirely on offshore infrastructure, the value of licenses will increase significantly.

What happens after the September 5 deadline?

The most immediate question at present is how the Pakistan Virtual Assets Regulatory Authority will strictly enforce the deadline for companies that continue to serve Pakistan customers but do not submit applications. The regulator has made clear that companies that continue to operate after September 5 without entering the application process will be illegal, increasing the risk of enforcement action against non-compliant service providers. If small or offshore companies believe that licensing costs exceed the value of the Pakistan market, the deadline could lead to a reduction in the number of platforms available locally. Large exchanges are more motivated to apply because the new system provides them with formal access to local operations and banking services.

Therefore, Pakistan's approach does not completely restrict cryptocurrency activities. The government allows exchanges, custodian services, derivatives companies and other digital asset companies to operate, but only within a regulated framework and with customer asset, security and financial crime control measures. The next phase will show how many companies are seeking full authorization after receiving preliminary approval, and whether major global exchanges will follow Binance and HTX into the process. The September 5 deadline will also be the first law enforcement test under the new system, marking Pakistan's shift from establishing a cryptocurrency framework to implementing licensing requirements.