Asian countries accelerate crypto regulation with Pakistan framework, South Korea license

Asian nations are accelerating cryptocurrency integration. On August 21, 2026, Pakistan ended an eight-year crypto ban by launching a licensing framework under its Virtual Assets Act, inviting foreign firms to build there. Meanwhile, BitGo Korea became the first foreign digital asset firm to secure a virtual asset service provider license from South Korean regulators, partnering with major local shareholders Hana Financial Group and SK Telecom.

Pakistan crypto regulatory framework

• ▪Pakistan's Virtual Assets Regulatory Authority announced the notification of licensing regulations and the opening of its licensing portal on August 21, 2026.
• ▪Pakistan's Virtual Assets Act, establishing the country's first comprehensive legal framework for virtual assets, was approved by the Senate and signed by President Asif Ali Zardari in 2026.

South Korea VASP licensing

• ▪BitGo Korea became the first foreign digital asset firm to obtain virtual asset service provider status from South Korean regulators.
• ▪BitGo Korea received approval from South Korea's Financial Intelligence Unit under the Financial Services Commission to operate as a virtual asset service provider.

Pakistan crypto policy reversal

• ▪Pakistan ended an approximately eight-year prohibition on virtual assets on August 21, 2026, by introducing a new regulatory and licensing framework.
• ▪Bilal Bin Saqib, Pakistan's special assistant to the prime minister on blockchain and cryptocurrency, stated on August 21, 2026, that the country has established rules to integrate virtual assets into the formal economy.

Foreign investment in Pakistan

• ▪Bilal Bin Saqib, Pakistan's special assistant to the prime minister on blockchain and cryptocurrency, invited foreign virtual asset businesses to establish operations in Pakistan on August 21, 2026.
• ▪Leaders of the Trump-backed cryptocurrency project World Liberty Financial met with Pakistan's prime minister in Islamabad in late 2025, following Donald Trump's return to power.

BitGo Korea regulatory compliance

• ▪Chen Fang, CEO of BitGo Korea, stated that the company's registration as a virtual asset service provider will serve as a model for foreign companies entering the South Korean market.
• ▪Hana Financial Group and SK Telecom acquired stakes of 25 percent and 10 percent, respectively, in BitGo Korea, forming strategic partnerships with the digital asset firm.

Pakistan Bitcoin mining initiatives

• ▪Pakistan announced plans to launch a national strategic Bitcoin reserve at the Bitcoin 2025 conference.
• ▪Pakistan allocated 2,000 megawatts of surplus electricity to Bitcoin mining and artificial intelligence data centers to generate revenue and attract foreign investment.