Pakistan Invites Global Crypto Firms to Apply for Licenses Under New Regulatory Framework

According to Cointelegraph, Pakistan has initiated a new federal regime to attract international crypto businesses, inviting leading exchanges and virtual asset service providers (VASPs) to apply for licenses. The Pakistan Virtual Asset Regulatory Authority (PVARA) has called on major crypto firms to submit Expressions of Interest (EoIs) to enter the country's digital asset market. Bilal bin Saqib, PVARA chair and minister of state for crypto and blockchain, emphasized the invitation as a step towards building a transparent and inclusive digital financial future for Pakistan. Eligibility for participation is restricted to firms already licensed by recognized regulators such as the US Securities and Exchange Commission (SEC), the UK Financial Conduct Authority, the EU’s VASP framework, the UAE’s Virtual Assets Regulatory Authority, and the Monetary Authority of Singapore. Companies interested in entering the Pakistani market must provide detailed submissions including company profiles, existing licenses and jurisdictions, proposed services like trading, custody, and payments, technology and security standards, assets under management, revenues, compliance track record, and a Pakistan-specific business model. The framework established by PVARA aims to curb illicit finance while unlocking opportunities in fintech, remittance, and tokenization, including Shariah-compliant products via regulatory sandboxes. PVARA, formed under the Virtual Assets Ordinance 2025, is responsible for licensing, regulating, and supervising VASPs in accordance with standards set by the Financial Action Task Force (FATF), International Monetary Fund (IMF), and World Bank. Pakistan has emerged as one of the fastest-growing crypto markets, ranking third in Chainalysis’ 2025 Global Crypto Adoption Index. In May, the country announced plans to establish a government-led Bitcoin Strategic Reserve, reflecting its new pro-crypto regulatory approach. Additionally, Pakistan has allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI centers, an initiative led by the Pakistan Crypto Council and supported by the Ministry of Finance. However, the IMF expressed concerns in July regarding Pakistan's plan to use surplus electricity for crypto mining, rejecting a proposal to offer subsidized power to energy-intensive industries, including Bitcoin miners.