Pakistan opens crypto market to international exchanges

ISLAMABAD, Pakistan (MNTV) — Pakistan has launched a sweeping licensing program for cryptocurrency exchanges and virtual asset companies, inviting some of the world’s largest digital finance firms to enter one of Asia’s fastest-growing markets.

The initiative is spearheaded by the newly established Pakistan Virtual Asset Regulatory Authority (PVARA), created under the Virtual Assets Ordinance 2025. The agency has been tasked with licensing, regulating, and supervising firms dealing in digital assets, including cryptocurrencies and tokenized financial products.

Officials say the move is designed to bring Pakistan’s fragmented crypto sector under formal regulation while aligning oversight with international standards set by the Financial Action Task Force, the International Monetary Fund, and the World Bank. 

The rules cover anti-money laundering, counter-terrorism financing, and cybersecurity, areas that have drawn scrutiny from global financial institutions.

Pakistan’s crypto landscape is vast and largely unregulated, with an estimated 40 million users and an annual trading volume exceeding $300 billion. Analysts say the market’s size rivals those of several mid-tier economies, making it a critical testing ground for global exchanges seeking to expand into frontier markets.

Under the framework, only firms with proven regulatory track records in jurisdictions such as the United States, United Kingdom, European Union, United Arab Emirates, or Singapore will be eligible to apply. Applicants must demonstrate compliance with strict know-your-customer and anti-money laundering rules, while also submitting detailed business models for proposed operations in Pakistan.

The program follows a broader government strategy to integrate digital assets into Pakistan’s financial system. Earlier this year, the state-backed Pakistan Crypto Council outlined plans to experiment with bitcoin mining powered by surplus energy, create a national bitcoin reserve, and attract global partnerships.

Officials argue that regulated digital assets could help drive financial inclusion in a country where large segments of the population remain outside the formal banking system. At the same time, they acknowledge the risks of illicit finance and speculative bubbles, which the new framework is intended to mitigate.

If successful, Pakistan’s licensing push could place it among the first major emerging markets to fully integrate virtual asset regulation, offering both global legitimacy and new opportunities in a rapidly evolving sector.