Pakistan starts restricting unlicensed crypto firms as PVARA opens licensing portal

Pakistan’s Virtual Assets Regulatory Authority (PVARA) has published licensing rules for crypto companies and opened a portal for applications. Firms already operating in the country now have until 5 September to apply for a no-objection certificate (NOC) or shut down.

1. PVARA said licenses are required for companies that fall into at least one of 10 government-approved activity categories: crypto exchanges, custody providers, broker-dealers, asset managers, advisers, crypto lending platforms, token issuers, miners, and businesses handling transfers and settlement in digital assets.
2. To qualify, platforms must comply with Pakistan’s rules on corporate governance, technology, cybersecurity, customer protection, and anti-money laundering and counter-terrorist financing controls.
3. In practice, that means KYC (know your customer) checks, transaction monitoring, and suspending transfers when suspicious activity is detected. Companies are also expected to screen clients for sanctions and blacklist exposure, and to report suspicious transactions to the financial intelligence unit and law enforcement.
4. Pakistan’s parliament passed a law in March requiring crypto companies that want to operate in the country to obtain a license. Operating without authorization is a criminal offense.
5. Unlicensed crypto platform operators face fines of up to 50 million Pakistani rupees (around $179,000) or up to five years in prison. Separate penalties apply for unauthorized marketing or placement of virtual assets: fines of up to 25 million rupees (approximately $89,000) and up to three years’ imprisonment.