Pakistan moves to license crypto exchange companies under new regulatory framework

Pakistan is moving toward formalising its cryptocurrency ecosystem, with regulators outlining a phased plan to license exchange companies under a new national crypto framework. The Pakistan Virtual Assets Regulatory Authority, backed by the State Bank of Pakistan and the SECP, is leading the rollout.

What is Pakistan's new crypto licensing framework?

Pakistan's crypto licensing framework requires interested participants to obtain a no-objection certificate from the Pakistan Crypto Council before opening bank accounts for crypto-related activities. In a second phase, exchange companies will be formally licensed. The framework is backed by the State Bank of Pakistan and the SECP, with compliance rules aligned to international AML and due diligence standards.

How will the phased crypto rollout work?

PVARA chairman Bilal bin Saqib outlined the two-phase plan at a meeting with the Exchange Companies Association of Pakistan. The association's chairman, Malik Muhammad Bustan, attended alongside President Zafar Pracha and General Secretary Sheikh Sajid Hussain.

Saqib said the first phase would allow participants to obtain NOCs and begin onboarding with full regulatory support. "In the second phase, exchange companies will be introduced, and efforts are underway to begin transactions as soon as possible so that the benefits reach every Pakistani citizen," he said.

Why does crypto regulation matter for Pakistan's remittances?

Bustan welcomed the initiative, saying it could modernise Pakistan's financial system and significantly improve remittance flows. He said overseas Pakistanis currently face delays of three to four days when sending money home. A proposed stablecoin framework linked to the Pakistani rupee and US dollar could enable near-instant transfers.

He estimated that around 40 million Pakistanis are already trading in cryptocurrencies, often paying transaction costs of 5% to 6%. With formal licensing in place, he said costs could fall to around 1% and transaction times would be cut to minutes.

What are Pakistan's remittance targets under the crypto plan?

Pakistan's annual remittance inflows currently stand at around $38 billion, with authorities aiming to raise that figure to $50 billion. Formalising crypto transactions is seen as a key lever to achieve that target by reducing costs and processing times for overseas Pakistanis.

Regulators including the State Bank, SECP, and the Crypto Council are working on compliance frameworks aligned with international standards. These cover anti-money laundering rules and customer due diligence requirements, to ensure Pakistan's crypto transactions gain global acceptance.