KARACHI: Pakistan is tightening its grip on the rapidly growing crypto industry, with the Pakistan Virtual Assets Regulatory Authority (PVARA) setting Sept. 5, 2026, as the deadline for existing virtual asset service providers (VASPs) to apply for no-objection certificates (NOCs), warning that firms missing the deadline could be forced to shut down operations.
The move marks a major step in Pakistan’s effort to bring the cryptocurrency industry under formal regulatory control. While virtual assets are not widely used by the general population, financial sector observers estimate that Pakistanis have invested billions of dollars in the sector.
PVARA said Pakistan’s virtual asset licensing system is now officially operational. The authority said the country has moved quickly from passing basic legislation to establishing regulations and opening the licensing process.
PAKISTAN IS GOING TO BAN ALL CRYPTO EXCHANGES AND P2P TRADERS FROM 5 SEPTEMBER 🚨🇵🇰🛑
On 21 August 2026, @PakistanVARA published the new Virtual Asset Services Regulations and opened applications. 🧾⚠️
That date is not a ban on every exchange.
It hits the ones that do not get a… https://t.co/92xqHQJxlU— ilmeaalim.eth (@ilmeaalim) August 21, 2026
The crypto sector has largely been developed under the Ministry of Finance. The ministry helped establish the Pakistan Crypto Council and created PVARA as an independent authority responsible for licensing, monitoring and enforcing rules for digital asset businesses.
Pakistan is now positioning itself to participate in the global digital asset economy through clearer rules, stronger oversight and greater accountability.
The State Bank of Pakistan has also changed its previous approach to virtual currencies. It has issued instructions allowing regulated banks to provide accounts and banking services to PVARA-licensed virtual asset service providers and their customers.
However, banks face strict conditions. The State Bank has directed commercial banks to maintain separate, non-interest-bearing rupee accounts for licensed providers to prevent customer funds from being mixed with other money.
Financial institutions must also follow strict anti-money laundering, know-your-customer and risk assessment requirements when dealing with licensed virtual asset businesses.
At the same time, banks cannot use their own funds or customer deposits to trade, invest in or hold virtual assets. Their role is limited to providing banking services and monitoring transactions involving authorized operators.
Bankers continue to warn that cryptocurrency investments can bring both significant profits and substantial losses because prices can change sharply.
