Pakistan sets September 5 deadline for crypto firms to register or cease operations

The Pakistan Virtual Assets Regulatory Authority (PVARA) has launched its licensing portal, giving existing crypto firms until September 5, 2026 to apply for a no-objection certificate or cease operations. Under the Virtual Assets Act, 2026, unlicensed operations after the deadline constitute a criminal offense. The framework establishes ten licensing categories and grants compliant firms access to the formal banking system, ending an eight-year restriction. Major exchanges Binance and HTX hold preliminary approvals, positioning them ahead in the compliance race.

PVARA licensing portal launch

• ▪The Pakistan Virtual Assets Regulatory Authority licensing portal accepts applications for full virtual asset service provider licenses, preliminary no-objection certificates, and a regulatory sandbox for product testing.
• ▪The Pakistan Virtual Assets Regulatory Authority launched its virtual asset licensing portal on August 22, 2026, following the notification of final regulations under the Virtual Assets Act, 2026.

September 5 registration deadline

• ▪Virtual asset service providers that continue operating in Pakistan after September 5, 2026 without submitting an application commit an offense under Section 70 of the Virtual Assets Act.
• ▪The Pakistan Virtual Assets Regulatory Authority has set a September 5, 2026 deadline for existing virtual asset service providers to apply for a no-objection certificate or cease operations.

Virtual Assets Act 2026

• ▪The Pakistan Virtual Assets Regulatory Authority was originally established in July 2025 by presidential ordinance before being made a permanent statutory regulator under the Virtual Assets Act, 2026.
• ▪The Virtual Assets Act, 2026 establishes ten license categories for virtual asset services, including exchange, custody, broker-dealer, lending, derivatives, asset management, token issuance, and mining.

Transitional provider requirements

• ▪Transitional virtual asset service providers that file complete applications by the deadline can continue operating while the Pakistan Virtual Assets Regulatory Authority reviews their submissions.
• ▪To secure a full license, applicants must incorporate a local subsidiary in Pakistan, meet minimum paid-up capital requirements, and register with Pakistan's Financial Monitoring Unit.
• ▪Virtual asset service providers operating on or before March 5, 2026, when the Virtual Assets Act took effect, are classified as transitional persons eligible to apply for a no-objection certificate.

Binance preliminary approval

• ▪Cryptocurrency exchanges Binance and HTX secured preliminary no-objection certificates from Pakistani regulators in December 2025, allowing them to bypass the initial clearance phase.
• ▪In December 2025, Pakistan signed a non-binding agreement with Binance to study the tokenization of up to $2 billion in state-owned assets, including sovereign bonds and commodity reserves.

Pakistan crypto market formalization

• ▪Pakistan's Federal Investigation Agency established a dedicated cryptocurrency unit in July 2026 to investigate digital asset use in money laundering, terrorism financing, and other financial crimes.
• ▪An April 14, 2026 State Bank of Pakistan circular allows regulated commercial banks to open segregated customer accounts for licensed virtual asset service providers, ending an eight-year restriction.
• ▪The State Bank of Pakistan has strictly prohibited commercial banks from trading, investing in, or holding virtual assets using their own capital or customer deposits.