Pakistan’s new crypto watchdog has ordered all existing digital asset exchanges to file for official clearance by September 5 or stop operating completely.
The Pakistan Virtual Assets Regulatory Authority (PVARA) launched its official licensing portal. It also issued a strict deadline for all virtual asset service providers (VASPs) operating in the country. Under Section 70 of the Virtual Assets Act 2026 existing platforms must submit applications for No-Objection Certificates (NOCs) by September 5, 2026.
PVARA warned that any platform failing to apply by the deadline must shut down its operations immediately. The autonomous body operates under the Ministry of Finance alongside the newly formed Pakistan Crypto Council (PCC) to oversee licensing, enforce compliance, and implement digital asset policies across the country.
State Bank Opens Banking Barriers Under Strict Controls
The State Bank of Pakistan (SBP) replaced its earlier restrictions on digital currencies to support the new legal framework. Commercial banks can now open specialized accounts for PVARA-licensed platforms and their customers:
Separation of Client Funds
SBP instructed banks to keep customer money in separate, non-remunerative rupee accounts. This prevents exchanges from mixing operating funds with user deposits
Prohibition on Proprietary Trading
SBP strictly banned commercial banks from trading, investing, or holding digital assets using bank capital or customer deposits
Compliance Checks
Financial institutions must enforce strict anti money laundering (AML), know-your-customer (KYC), and risk-profiling standards on all crypto transactions.
Local market analysts estimate that Pakistani citizens have invested several billion dollars in digital assets. PVARA Chairman Bilal Bin Saqib emphasized that the new rules replace previous market uncertainty with consumer protections, clear legal oversight and a structured pathway into the formal economy.
