Virtual assets licensing launched
Pakistan has built a complete licensing system for virtual assets in less than six months and has given existing operators until September 5, 2026 to apply. Minister of State and Chairman of the Pakistan Virtual Assets Regulatory Authority Bilal bin Saqib announced the development on Saturday while briefing the media on the Pakistan Virtual Asset Regulation Service 2026.
Saqib said the regulatory framework "does more than supervise exchanges" and described it as the foundation of the digital economy. He stated that blockchain, stablecoins and tokenisation could create new opportunities for exports, remittances and SME financing.
Tokenisation, he explained, could link exporters' trade receivables and other assets to global capital markets and improve access to working capital. Pakistan, he added, could also play a significant role in Islamic finance through tokenised products.
The regulatory journey, according to the chairman, follows three stages. The first stage covers licensing, consumer protection and the enforcement of anti-money laundering rules. Later stages will focus on practical applications of blockchain in remittances, cross-border payments, digital exports, trade finance and tokenised securities.
The Pakistan Virtual Assets Regulatory Authority has issued the licensing regulations and opened its licensing portal. The authority has now completed the full regulatory architecture under which it will licence and supervise virtual asset service providers in Pakistan. The regulations issued under the Virtual Assets Act 2026 create 10 categories of licences.
These cover exchanges, custody, broker-dealers, advisory services, lending and borrowing, derivatives, asset management, transfer and settlement, asset issuance, and mining-related services. Each category carries its own detailed rules on conduct, financial prudential requirements, technology standards, and anti-money laundering and counter-terrorism financing obligations.
Existing operators face a firm deadline. Under Section 70 of the Act, every person who provided virtual asset services before the Act came into force must submit an application for a no-objection certificate by September 5, 2026. Anyone who continues operations after that date without filing an application commits a criminal offence and must shut down the activity.
Bilal bin Saqib said a generation of young Pakistanis built this market at a time when the state was not ready. "Today, the state stands with them." For hundreds of thousands of Pakistanis, he said, their assets would no longer rest only on hope. "Licensed providers must keep client funds and assets separate from their own, must not lend or pledge them without written permission, and must leave those assets untouched even if the firm fails. These obligations now carry the force of law rather than remaining mere promises."
He told the existing market participants that the regulations gave them a clear path: obtain a licence, connect with the banking system, and build something durable. He told the young people who entered the market first that they moved ahead of the state, and "now the state has joined them".
The authority issued the regulations after public consultations that ran from June 11 to July 2, 2026 and included a public stakeholder webinar. The licensing process itself has two routes. Applicants who wish to register a company in Pakistan can either enter a supervised regulatory sandbox or first obtain a no-objection certificate under Section 19 and then apply for a full licence after incorporating the company. All transitional operators must still file their no-objection applications by the September 5 deadline. Applicants can submit applications through the authority's website.
Licensed entities will gain formal access to the banking system. Under the State Bank of Pakistan's Circular No 10, issued on April 14, 2026, regulated banks may now open accounts for licensed virtual asset service providers, including segregated accounts for client funds. This decision lifts the ban that had been in place since 2018.
The entire framework took shape in six months. Parliament established the Pakistan Virtual Assets Regulatory Authority as a permanent statutory body through an Act in March 2026. The State Bank circular in April secured banking access for licensed firms. After public consultation, the authority has now issued the licensing regulations and opened the portal.
Bilal bin Saqib noted that artificial intelligence and blockchain were rapidly reshaping the global economy. Pakistan, he said, must develop national capacity that could capture the benefits of successive waves of technological change rather than depend on any single technology.