Pakistan Calls for Global Participation
Pakistan has officially invited international crypto firms to apply for operating licenses, marking a major step toward building a regulated digital asset ecosystem. On Saturday, the Pakistan Virtual Asset Regulatory Authority (PVARA) issued a call for Expressions of Interest (EoIs), targeting leading global exchanges and virtual asset service providers (VASPs).
The invitation underscores Pakistan’s ambition to position itself as a rising crypto hub, while aligning with global compliance frameworks to ensure legitimacy.
Even under a ban and without a regulator, Pakistan hit #3 in crypto adoption. The goal is to create a blueprint for how digital assets should be embraced. https://t.co/qaEpRWdmck
— Bilal bin Saqib MBE (@Bilalbinsaqib) September 4, 2025
Even under a ban and without a regulator, Pakistan hit #3 in crypto adoption. The goal is to create a blueprint for how digital assets should be embraced. https://t.co/qaEpRWdmck
— Bilal bin Saqib MBE (@Bilalbinsaqib) September 4, 2025
Strict Licensing and Compliance Rules
Eligibility to apply is limited to firms already licensed by major regulators, such as the U.S. Securities and Exchange Commission (SEC), the UK Financial Conduct Authority (FCA), the EU’s VASP framework, the UAE’s VARA, and the Monetary Authority of Singapore (MAS).
Applicants must submit detailed dossiers, including company profiles, existing licenses, services offered, technology and security standards, compliance track records, and assets under management. They must also present a Pakistan-specific business model.
PVARA explained that the framework is designed to both curb illicit finance and unlock fintech opportunities, including remittances, tokenization, and Shariah-compliant financial products tested through regulatory sandboxes.
PVARA and Global Standards
Established under the Virtual Assets Ordinance 2025, PVARA is responsible for licensing, regulating, and supervising VASPs. Its mandate aligns with global standards set by the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the World Bank.
The goal is to create a robust, transparent, and internationally credible regulatory environment, giving both domestic and foreign participants the confidence to operate within Pakistan’s borders.
Pakistan’s Growing Role in Crypto
The move comes as Pakistan cements itself as a top global crypto adopter. According to Chainalysis’ 2025 Global Crypto Adoption Index, Pakistan ranks third worldwide, climbing six spots in just one year. The country has become one of the fastest-growing markets for digital assets, driven by grassroots adoption and cross-border remittance needs.
Earlier this year, Pakistan also announced plans to establish a Bitcoin Strategic Reserve, with 2,000 megawatts of surplus electricity earmarked for Bitcoin mining and AI centers. Bilal bin Saqib unveiled the initiative during the Bitcoin 2025 conference in Las Vegas, framing it as part of Pakistan’s pro-crypto policy shift.
Challenges Ahead: IMF Pushback
Despite this momentum, not all stakeholders are on board. In July 2025, the IMF raised concerns over Pakistan’s plan to allocate subsidized energy for Bitcoin mining. The Fund warned that such measures could distort energy policy and undermine broader economic stability.
Still, Pakistan’s government appears determined to balance innovation with compliance, pushing forward with licensing while fine-tuning its broader digital asset strategy. If successful, the country could emerge as a regional leader in regulated crypto markets, attracting capital, talent, and technology from around the world.
