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

Pakistan has launched its virtual asset licensing portal, setting a strict September 5, 2026, deadline for existing crypto firms to apply for a No-Objection Certificate or cease operations. Under the Virtual Assets Act 2026, continuing unlicensed operations after the deadline is a criminal offense. The framework requires local incorporation, asset segregation, and strict compliance, but offers licensed firms access to the formal banking system. Major exchanges Binance and HTX hold a head start after securing preliminary approvals in December 2025.

September 5 registration deadline

• ▪Virtual asset service providers that submit complete applications to the Pakistan Virtual Assets Regulatory Authority by September 5, 2026, can generally continue operating during the regulatory review.
• ▪Operating a virtual asset service in Pakistan after September 5, 2026, without submitting an application constitutes a criminal offense under Section 70 of the Virtual Assets Act 2026.
• ▪Existing virtual asset service providers operating in Pakistan on or before March 5, 2026, must apply for a No-Objection Certificate by September 5, 2026, or cease operations.

Virtual Assets Act 2026

• ▪The Virtual Assets Act 2026 established the Pakistan Virtual Assets Regulatory Authority as a permanent statutory regulator after it was initially created as a temporary body by presidential ordinance in July 2025.
• ▪The Virtual Assets Act 2026 took effect for transitional purposes on March 5, 2026, initiating a six-month transition runway for existing crypto businesses.

Compliance requirements for VASPs

• ▪The Pakistan Virtual Assets Regulatory Authority licensing framework establishes multiple license categories covering activities such as custody, exchanges, lending, derivatives, asset management, token issuance, and mining.
• ▪To secure a full license, applicants must incorporate a local company in Pakistan under the Companies Act 2017, meet minimum capital requirements, and clear suitability checks for key personnel.
• ▪A State Bank of Pakistan circular issued on April 14, 2026, allows regulated banks to provide accounts, including segregated customer accounts, to licensed virtual asset businesses.
• ▪Licensed virtual asset service providers in Pakistan must segregate customer assets from company holdings and are prohibited from lending or pledging client assets without written consent.

Pakistan crypto user base

• ▪Pakistan's cryptocurrency market is estimated to have a user base of approximately 30 million to 40 million people.
• ▪Pakistan ranked third in Chainalysis' 2025 global crypto adoption index.

Binance preliminary approval

• ▪Binance and HTX obtained preliminary No-Objection Certificates from Pakistani regulators in December 2025, allowing them to bypass the initial gate and apply directly for full licenses.
• ▪In December 2025, Pakistan signed a non-binding agreement with Binance to study the tokenization of up to $2 billion in state-owned assets.