Pakistan Invites Global Crypto Exchanges for Licensing

Pakistan has taken a pretty big step in the crypto world: it’s officially inviting global exchanges to come in and apply for licenses. This isn’t just a casual announcement either. The government set up a new body earlier this year, the Pakistan Virtual Assets Regulatory Authority (PVARA), to manage everything under the Virtual Assets Ordinance of 2025. That law only came into effect in July, so things are moving quickly.

Pakistan Invites Global Crypto Exchanges for Licensing

What Pakistan is saying to these international exchanges is: if you’re already licensed in places like the US, UK, EU, UAE, or Singapore, you can put your name forward. They want companies with a track record of being regulated, not fly-by-night operators. To apply, firms need to lay out the full picture where they’re currently licensed, what services they’ll offer in Pakistan, their security and compliance systems, financials, and even a localized business plan. It’s clear they’re trying to avoid the wild west vibe that’s surrounded crypto in the past.

The broader plan is to align Pakistan with international standards like FATF guidelines and to create regulatory sandboxes where new ideas can be tested, even ones tailored for Islamic finance. The fact that they’re explicitly mentioning Shariah-compliant products shows they’re thinking about how crypto might fit into Pakistan’s social and cultural context, not just the global playbook.

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Why now? Well, Pakistan has a huge crypto-curious population. Estimates put the market at over 40 million users with an annual trading volume around 300 billion dollars. That’s a massive number for a country where, until recently, regulators were sending mixed signals about whether crypto was even allowed. By creating a licensing framework, the government is trying to make the space safer for users, attract foreign investment, and give the fintech sector some legal certainty.

Of course, there are questions about how smoothly this can play out. The IMF has already raised eyebrows about Pakistan’s energy plans, like using excess electricity for crypto mining, at a time when the country still faces power shortages. There’s also the practical side: PVARA is brand new, and it has to prove it can actually enforce these rules on things like cybersecurity, anti-money laundering, and compliance checks without getting overwhelmed.

It’s also worth noting that developing crypto products that satisfy both Shariah principles and global regulators won’t be simple. Pakistan isn’t the first to try this balancing act, but it will be watched closely to see how it works out.

So in short, Pakistan is opening the doors to global exchanges, but it’s doing so in a controlled, rules-based way. It’s a big shift from the uncertainty of the past few years. Whether it pays off will depend on how fast they can process applications, how well they enforce standards, and whether they can convince both locals and international players that the country is ready to be taken seriously in the digital assets space.