Pakistan has started licensing businesses in the digital asset sector under a new regulatory framework. Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib said the authority has received 70 applications from companies seeking to provide digital asset services.
Saqib said the new system aims to bring digital asset businesses under clear rules and formal oversight. Companies that meet the required standards will receive licenses to offer virtual asset services.
PVARA has already published the country’s first comprehensive framework for regulating virtual assets and virtual asset service providers. The framework covers licensing, supervision, compliance and other regulatory requirements.
PVARA Reviews 70 Applications
Saqib said PVARA has received 70 applications from businesses seeking to enter Pakistan’s regulated virtual asset market.
The authority will review each application against its regulatory requirements. Companies that meet the standards can move forward in the licensing process.
The framework is designed to improve transparency and oversight. It also aims to bring existing virtual asset activity into the formal regulatory system.
PVARA says existing virtual asset service providers that were operating on or before March 5, 2026, had to submit applications for a No-Objection Certificate by September 5. Firms that fail to comply must cease operations under the relevant legal provisions.
Regulatory Framework Completed in Six Months
Saqib said Pakistan developed the core regulatory framework for digital assets within six months.
The process covered licensing, market supervision, transparency and compliance. The authority also held a public consultation on the draft Virtual Asset Services Regulations before finalising the framework.
He said Pakistan should not ignore the growing global role of digital assets. Instead, the country is seeking to regulate the sector and develop practical uses for the technology.
The wider strategy includes cross-border payments, remittances, digital exports, trade finance and tokenised financial assets.
PVARA Reports Limited Budget Use
Saqib also highlighted the authority’s spending during the development of the regulatory system.
He said PVARA used only 8 percent of its allocated budget during the current year. The remaining 92 percent, he said, was returned to the national treasury.
According to Saqib, the figures show that the authority kept spending under control while building the regulatory framework.
Pakistan Plans UN Policy Paper on Tokenization
Saqib said Pakistan will also present a policy paper at the United Nations on digital assets and tokenization.
He said Pakistan wants to contribute to the global debate on digital asset regulation. The country also aims to share its regulatory experience as governments develop rules for emerging financial technologies.
Tokenization has become a major area of interest in Pakistan’s digital asset strategy. Officials are exploring its possible use in trade finance, private credit and other areas of the economy.
Talks With State Bank on Remittances
Meanwhile, PVARA is discussing digital remittances with the State Bank of Pakistan.
Saqib said the talks focus on making remittance transfers faster, cheaper and more efficient. The discussions include the possible use of regulated stablecoins.
Pakistan receives around $40 billion in annual remittances. Saqib said the average global cost of sending $200 is around 6 percent, citing World Bank data.
He said regulated stablecoins could potentially reduce transfer costs to about 1 percent. A one-percentage-point reduction across roughly $40 billion in annual remittances could save about $400 million each year.
However, any stablecoin-based remittance service would need regulatory approval. PVARA has said that stablecoin and blockchain-based services for users in Pakistan fall within its regulatory framework.
Saqib said Pakistan is now seeking to move beyond basic digital asset trading. The broader goal is to use new financial technology for economic growth while keeping the market under effective regulatory oversight.
