Pakistan’s Virtual Assets Regulatory Authority has opened a licensing portal for crypto businesses and formally put its new rulebook into effect for firms operating in the country.
Under the framework, existing virtual asset service providers must apply for a no-objection certificate by Sept. 5 or stop operating. PVARA said that continuing to operate after that deadline without filing an application will be treated as an offense.
New entry point for regulated crypto activity
The portal is intended to give businesses a defined route into Pakistan’s regulated virtual asset market. PVARA presented the move as part of a broader system built around consumer protection, governance, compliance and market integrity.
The rules apply across a wide range of crypto-related services. The framework covers exchanges, custody, broker-dealer activity, lending, derivatives, asset management, token issuance and mining-related services.
Existing operators face a near-term deadline
The immediate compliance issue is for firms already serving the market. Those providers have until Sept. 5 to seek a no-objection certificate under the new regime.
PVARA said firms that do not submit an application by that date must cease operations. If they continue operating after the deadline without applying, that will constitute an offense under the framework.
Routes to licensing and supervised testing
The system does not only address firms that are already active. According to the framework, virtual asset service providers can seek a no-objection certificate before incorporating locally.
Companies also have the option of entering a regulatory sandbox. That path would allow products to be tested under PVARA supervision before the business moves on to seek a full license.
Core safeguards in the new rulebook
The requirements for licensed providers include separating customer holdings from company assets. Firms are not permitted to lend or pledge customer assets unless they have written consent.
Beyond custody rules, the framework also calls for governance standards, market conduct rules, cybersecurity measures, operational resilience and controls related to anti-money laundering and counter-terrorism financing.
What comes next
The next confirmed milestone is the Sept. 5 deadline for existing providers. By that date, firms already operating in Pakistan’s virtual asset market must either file for a no-objection certificate or halt their activity.
After that, the practical test of the framework will be how companies use the available pathways, including pre-incorporation applications and the regulatory sandbox, before moving toward full licensing under PVARA oversight.
Source: cointelegraph.com