ISLAMABAD:Pakistan Virtual Assets Regulatory Authority (PVARA) has set September 5, 2026, as the deadline for existing virtual asset service providers (VASPs) to apply for no-objection certificates (NOCs).
PVARA has warned that firms that fail to meet the deadline could be forced to stop their operations, marking a major step towards tighter government oversight of the crypto sector. The authority said Pakistan’s virtual asset licensing system is now officially operational, allowing digital asset businesses to enter a formal regulatory framework.
The development comes as Pakistan seeks to establish clearer rules for an industry that has attracted significant interest and investment despite limited regulation in the past. Financial sector observers estimate that Pakistanis have invested billions of dollars in virtual assets.
The crypto sector has largely been developed under the Ministry of Finance, which helped establish the Pakistan Crypto Council and create PVARA as an independent authority responsible for licensing, monitoring and enforcing rules for digital asset businesses. The State Bank of Pakistan has also changed its earlier approach to virtual currencies.
It has allowed regulated banks to provide accounts and banking services to PVARA-licensed virtual asset service providers and their customers. However, banks must follow strict conditions. Commercial banks have been directed to maintain separate, non-interest-bearing rupee accounts for licensed providers to ensure customer funds are kept separate from other money.
Banks and financial institutions must also follow anti-money laundering, know-your-customer and risk assessment requirements when dealing with licensed crypto businesses. At the same time, banks are not allowed to use their own funds or customer deposits to trade, invest in or hold virtual assets. Their role is limited to providing banking services and monitoring transactions involving authorised operators.
The new framework is expected to give Pakistan’s digital asset industry a clearer legal structure while increasing accountability and oversight. However, bankers continue to warn that cryptocurrency investments carry significant risks. Prices can rise or fall sharply, meaning investors can make large profits but can also suffer substantial losses.
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