Pakistan is finally opening doors to official crypto transactions in the country. A report from local outlet Dawn states that the government has invited virtual asset service providers (VASPs) to submit Expressions of Interest (EoIs) to enter the country’s digital asset market.
This move is led by the newly formed Pakistan Virtual Asset Regulatory Authority (PVARA) and is intended to provide operating licences to crypto entities. It’s part of a broader effort to regulate crypto operations and encourage innovation in the country.
“This EoI is our invitation to the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan,” said Bilal bin Saqib, PVARA chair and minister of state for crypto and blockchain.
After nearly a year of preparation, this is the government’s first major market-facing move in crypto regulation.
“This initiative marks a pivotal step in formalising and fostering a secure, innovative virtual assets ecosystem, aligning with international standards set by the Financial Action Task Force (FATF), IMF, and World Bank,” the official statement read.
Strict qualification criteria
The licensing invitation established strict criteria that all applicants must meet.
First, applications are restricted to VASPs and exchanges already holding licences from other major international regulators. These include the US Securities and Exchange Commission, the EU’s VASP framework, the UK Financial Conduct Authority, the Monetary Authority of Singapore, and the UAE’s Virtual Assets Regulatory Authority.
In their submissions, VASPs and exchanges must provide their company profiles, licensing details, and a list of services they intend to offer within the country. Other required details are the assets under management, revenue details, and compliance history.
Besides these, applicants also need to outline their business models and specifically highlight how they will tailor their services to meet the unique needs of the Pakistani culture.
The move is part of broader crypto regulation measures
Pakistan’s EoI invitation comes just two months after the government announced the formation of the Virtual Assets Regulatory Authority (PVARA).
This is the body that has issued the EoI, and it’s responsible for the licensing, monitoring and supervision of virtual asset service providers (VASP). It’s also mandated to set technical standards and coordinate compliance with FATF, IMF, and World Bank guidelines. This is on top of protecting the public from bad actors, overseeing anti-money laundering protocols, and mitigating cyber risks across all virtual asset transactions within the country.
The launch of the PVRA was the result of a government policy change that was announced in February.
According to another report from Dawn, Pakistan’s Finance Minister, Muhammad Aurangzeb, released a statement that the ministry had a meeting on digital assets with a foreign delegation that included President Trump’s digital assets advisors.
The result of the meeting was an announcement that the government was considering establishing “a National Crypto Council” that would help the country regulate and adopt emerging digital currencies, in line with global trends. This would serve as the advisory body in all matters regarding digital assets and would be comprised of key government representatives, regulatory authorities, and industry experts.
The Pakistan Cryptocurrency Council (PCC) was then established in March, and the government later confirmed that former Binance CEO Changpeng “CZ” Zhao had been appointed as an adviser.
While on a tour of the US in May aimed at boosting investment, PPC’s CEO, Bilal Bin Saqib, announced that Pakistan had established a government-led Strategic Bitcoin Reserve. In his keynote speech at Bitcoin Vegas 2025, he stated that the government now had a national bitcoin wallet, “holding digital assets already in state custody — not for sale or speculation, but as a sovereign reserve signalling long-term belief in decentralised finance.”
Saqib also mentioned the creation of the Pakistan Digital Assets Authority (PDAA), a regulatory body that would empower crypto and blockchain builders, protect investors, and formalise digital finance frameworks for the future.
He then called on investors to build in Pakistan, which was in line with the recent invitation for crypto service providers to get Pakistani licences.
“If you’re building something real — come build it in Pakistan. Come build wallets for the unbanked. Come tokenise land. Come scale your mission with our youth and our unstoppable grit.”
A 360-degree turnaround in crypto policies
“Both Pakistan and Bitcoin have suffered from bad PR,” Saqib admitted in his US speech.
This is because, despite the country’s high rates of crypto adoption, Pakistan has always had an anti-crypto policy. In 2018, the State Bank of Palestine (SBP) issued a public notice directing all financial institutions and payment processors to ban crypto transactions. The government institution stated that this was meant to counter money laundering and protect citizens from crypto fraud.
In 2022, the bank then proceeded to court, seeking to ban crypto outright, according to local TV network Samaa. Luckily for investors, the court referred the SBP to the Ministries of Law and Finance, directing them to decide whether to ban cryptocurrencies.
Things hit a new low in May 2023 when the Minister of State for Finance and Revenue, Aisha Ghaus Pasha, told a Senate committee that cryptocurrencies “will never be legalised” in Pakistan.
However, less than two years later, the government would establish the PPC and create a framework for crypto regulation. In part, this was influenced by US President Trump’s re-election and his crypto-friendly policies, as noted in the Pakistani government’s February announcement on crypto adoption.
A strategic move towards innovation and economic growth
Pakistan is currently ranked third in crypto adoption by Chainalysis, behind only India and the United States. All this growth has occurred despite the banking sector’s ban on crypto, primarily through peer-to-peer transactions.
When inviting crypto service providers for licensing, PVARA was keen to highlight the figures: “Pakistan’s virtual assets market, with over 40 million users and an estimated annual trading volume exceeding $300 billion, represents one of the world’s most dynamic frontier opportunities.”
This turnaround and push towards full regulation will now further boost investor adoption, and the government will also benefit from increased economic growth.
When launching the PVARA in May, Muhammad Aurangzeb, Pakistan’s Federal Minister for Finance and Revenue, said that the country “must regulate not just to catch up, but to lead.”
“We are creating a future-ready framework that protects consumers, invites global investment, and puts Pakistan at the forefront of financial innovation.”
