Millions of Pakistanis have traded cryptocurrencies for years while the legal status of such activity hovered in uncertainty. The country’s recent legislation finally brings clarity but not the licenses exchanges need to operate freely. No platform has yet secured a full license under the new rules, leaving the market at a crossroads.
The Virtual Assets Act Brings Structure but Not Yet Approval
In 2026, Pakistan adopted the Virtual Assets Act, replacing a temporary ordinance from the previous year. The law establishes the Pakistan Virtual Assets Regulatory Authority (PVARA), tasked with overseeing all crypto-related businesses. This includes exchanges, wallet providers, custodians, token issuers, and advisory services. They must obtain official licenses from PVARA to operate legally, with non-compliance classified as a criminal offense carrying steep fines and prison terms.
Exchanges Start the Process but Remain Unlicensed
So far, no exchange in Pakistan holds a complete operating license. In December 2025, Binance and HTX received No Objection Certificates (NOCs), which are essentially conditional green lights allowing them to register with anti-money laundering agencies and set up local entities. PVARA chairman Bilal bin Saqib emphasized these NOCs are early stage, not full approvals. Bitget also joined this preliminary phase. The detailed licensing framework is still under public consultation, expected to conclude by mid-2026.
Legal Risks for Businesses, Less So for Users
The toughest penalties target service providers, not regular users. Unlicensed operators face fines up to PKR 50 million and up to five years imprisonment, with smaller but significant penalties for unauthorized promotion of virtual assets. For now, everyday traders continue cautiously, as the official ecosystem prepares to take shape amid these evolving rules.
This article is for informational purposes and does not constitute financial advice.
