Pakistan has officially opened its virtual asset licensing system for businesses. Crypto Companies can now apply for regulatory approval under the Virtual Assets Act, 2026.
The Pakistan Virtual Asset Regulatory Authority is accepting applications from virtual asset businesses. Applicants can seek sandbox participation, No Objection Certificates or full licenses.
The new system requires service providers to obtain approval before offering virtual asset services. The move introduces a formal regulatory structure for the sector.
Existing Crypto Companies face a specific deadline under the new law. Businesses operating before March 5, 2026 must apply for an NOC.
The deadline for these applications is September 5, 2026. Businesses that fail to apply must stop their virtual asset operations.
The licensing system covers several types of virtual asset activities. These include advisory services, brokerage services and digital asset custody.
The framework also covers exchanges, lending and borrowing services. Virtual asset derivatives and asset management activities are included as well.
Businesses involved in transfers and settlement can also apply for approval. The rules cover asset-referenced and fiat-referenced tokens.
Mining-related virtual asset services also fall under the new regulatory framework. This gives the authority oversight across a broad range of digital asset activities.
Companies seeking a full license must meet several conditions. They must first be registered as companies in Pakistan.
Applicants must also meet minimum paid-up capital requirements. Directors and key staff will face fit and proper assessments.
The framework also requires strong financial crime controls. Companies must establish anti-money laundering and counter-terrorism financing systems.
Cybersecurity is another major requirement under the licensing system. Applicants must also maintain suitable business continuity arrangements.
The framework offers two main routes for businesses seeking full approval. New firms developing innovative products can enter the regulatory sandbox.
The sandbox allows companies to test their products under controlled conditions. Successful businesses can then proceed toward a full license.
Existing operators have another option through the NOC route. This process includes preliminary approval and regulatory compliance checks.
Businesses must also complete local incorporation before seeking a full VASP license. The process is designed to bring existing operators into the formal system.
The launch marks an important step for Crypto Companies operating in Pakistan. It also gives regulators greater oversight of virtual asset services.
Crypto Companies will now need to meet formal regulatory standards. Businesses must also follow the deadlines and compliance requirements set under the law.
The licensing system could provide a clearer operating structure for the virtual asset sector. It also establishes requirements for companies seeking to enter the Pakistani market.
In other news read more about Budget 2026-27 May Introduce Up to 30% Tax on Crypto Gains in Pakistan
Further details about applications and licensing requirements are expected through PVARA. Businesses will need to review the framework before starting their applications.
