Pakistan Woos Overseas Exchanges as Crypto Rules Take Shape

Pakistan has launched the Pakistan VIRTUAL Assets Regulatory Authority (PVARA) under the Virtual Assets Ordinance 2025, marking a significant step toward formalizing its crypto market. The move targets international exchanges, inviting them to operate legally in a country with over 40 million crypto users and an estimated $300 billion in annual trading volume.

For years, Pakistan's crypto industry operated in a regulatory grey area, raising concerns about fraud and money laundering. The new framework aims to address these issues by establishing clear rules. "By creating clear rules, Pakistan signals to global investors that it is serious about digital assets," said a senior finance official.

The licensing process will be stringent. Only exchanges already licensed by major global regulators—such as the US SEC, UK FCA, EU VASP, UAE VARA, or Singapore’s MAS—will qualify. Applicants must demonstrate robust AML and CTF compliance, strong KYC protocols, and a business plan tailored to Pakistan’s market.