Pakistan gives crypto firms Sept. 5 to apply or stop services

Pakistan’s Virtual Assets Regulatory Authority set a Sept. 5 deadline for crypto platforms that were operating in the country when the Virtual Assets Act took effect on March 5 to apply for a no-objection certificate (NOC) or stop covered services. PVARA opened an online licensing portal on Aug. 22 after issuing final virtual-asset service regulations on Aug. 21.

Companies that submit a timely and complete NOC application may continue offering current services while PVARA reviews their filings. The regulator can impose interim limits on onboarding, product offerings, transaction volumes or custody arrangements during the review. Firms that do not file by Sept. 5 must cease the affected services, and continuing to operate after the deadline will be treated as an offense.

An NOC is preliminary regulatory clearance rather than a full license. Receiving an NOC allows a provider to carry out required compliance work and incorporate locally before applying for a full virtual asset service provider license.

PVARA has also opened a regulatory sandbox for testing new products. Participation in the sandbox does not guarantee that a firm will receive a license.

PVARA’s rules treat a provider as in scope if it markets or solicits Pakistani customers, onboards users in Pakistan, or supports Pakistani-rupee payment rails. A website or app accessible from Pakistan alone does not create coverage if a firm can show it does not target Pakistani users and has taken reasonable steps to prevent onboarding.

The immediate effect for customers will vary. The regulations require nonfilers to stop covered services but do not set a single national process for shutting down trading, withdrawals or custody accounts. Licensed providers must segregate customer assets, keep them available for timely return and maintain withdrawal and claims channels during an orderly wind-down.

Two large exchanges, Binance and HTX, received NOCs in December 2025 and under the transition rules can apply directly for full licenses instead of seeking fresh preliminary clearance. PVARA noted other firms now face a choice to enter the licensing process and operate under supervision or stop offering covered services to Pakistani users.

PVARA chairman Bilal Bin Saqib stated: “This market [previously] existed without a clear regulatory pathway. Today, that changes. We now have the rules, the regulator and the licensing framework to bring virtual assets into the formal economy, protect consumers and build the foundation for the next generation of financial infrastructure. Today we built the rules. Now we build the opportunity.”