Pakistan invites global crypto exchanges to enter regulated market
PVARA calls for Expressions of Interest after passing first Virtual Assets Ordinance in July
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
Pakistan’s newly established Virtual Asset Regulatory Authority (PVARA) has invited Expressions of Interest (EoIs) from global cryptocurrency exchanges and Virtual Asset Service Providers (VASPs), signaling a landmark move to regulate and integrate digital assets into the national economy.
According to a document received from the Finance Ministry, the call for EoIs, announced Saturday, follows the promulgation of the Virtual Assets Ordinance, 2025 (Ordinance No. VII of 2025). The country’s first comprehensive legal framework for virtual assets came into effect on July 8 and was published in the Gazette of Pakistan the following day.
“This EoI is our invitation to the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan,” said Bilal bin Saqib, Chairman of PVARA and Minister of State for Crypto and Blockchain.
The initiative is aimed at licensing, regulating, and supervising the operations of VASPs in line with international standards set by the Financial Action Task Force (FATF), IMF, and World Bank. It also includes a strong emphasis on anti-money laundering (AML), counter-terrorism financing (CFT), and cybersecurity controls.
A burgeoning market
With over 40 million users and an estimated annual trading volume exceeding $300 billion, Pakistan has quietly emerged as one of the most active crypto markets in the world.
According to the 2023 Global Crypto Adoption Index by blockchain analytics firm Chainalysis, Pakistan ranked sixth globally, ahead of countries like the UK, Brazil, and Indonesia. This surge in crypto activity has largely been driven by young retail investors, remittance inflows, and inflation hedging, all operating in a previously unregulated gray zone.
The new Ordinance aims to bring this massive, informal market under formal supervision, offering protection to investors while opening the door for international partnerships.
PVARA’s EoI is open to international exchanges and service providers that are already licensed in reputable jurisdictions such as the U.S. SEC/MSB, UK FCA, EU VASP, UAE VARA, or Singapore MAS. Applicants must demonstrate compliance with AML/CFT/KYC standards and detail their operational, technical, and financial history.
Regulatory sandboxes
PVARA is also launching regulatory sandboxes to test innovative products, including Shariah-compliant crypto solutions, digital wallets, and blockchain-based remittance platforms. This is seen as a critical component in making digital finance inclusive and compatible with Islamic finance principles — a major concern in Pakistan’s largely Muslim population.
Looking ahead
As Pakistan grapples with macroeconomic challenges, including a narrow tax base and heavy reliance on informal financial flows, regulators hope the formalization of the crypto market will not only attract foreign investment but also improve financial transparency and digital inclusion.
The government sees this move as a strategic step toward modernizing its financial infrastructure while aligning with global best practices, a critical requirement after being removed from the FATF’s gray list in 2022.
With crypto adoption already widespread among the public, Pakistan’s challenge now lies in channeling that momentum into a regulated, secure, and innovation-friendly ecosystem.
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