Pakistan is taking a decisive step toward the institutionalization of digital assets. The country's Virtual Assets Regulatory Authority has officially launched the licensing procedure for crypto businesses, marking a transition from the gray zone to a full-fledged legal framework.
The key deadline is September 5, 2026. All companies that were operating in Pakistan as of March 5, 2026, are required to submit an application for a no-objection certificate. Otherwise, they will have to wind down their business. This is a tough but expected move: the regulator aims to bring order to an industry that has long existed outside the legal framework.
Ten categories — full market coverage
The developed licensing system covers all key segments of the crypto economy. The list includes ten categories of permits: crypto exchanges, custodial services, brokerage platforms, lending protocols, platforms for derivatives trading, asset management companies, and mining enterprises. Such a broad scope indicates that Pakistan's authorities intend not just to control but to stimulate the industry's development, creating transparent rules of the game for each direction.
Particular attention deserves the inclusion of mining in the list of licensed activities. This is a signal for international investors: a country with cheap electricity and a geographical position at the crossroads of trade routes is ready to compete for capital in this sector.
In my view, the launch of licensing is not just a bureaucratic formality but a strategic maneuver. Pakistan, with its young population and growing internet penetration, could become a new hub for crypto innovation in South Asia. However, success will depend on how quickly the regulator can process applications and how flexible the compliance requirements turn out to be. If the process drags on, we risk seeing businesses exit to more friendly jurisdictions, such as the UAE or Singapore.