Pakistan has formally launched the licencing process for cryptocurrency exchanges, marking a key milestone for the country’s digital finance sector. The Pakistan Virtual Assets Regulatory Authority has invited global crypto service providers to apply for licences to operate in the country.

Experts estimate that Pakistan’s crypto market currently serves around 40 million users, with an annual trading volume approaching $300 billion, making it one of the largest unregulated markets in the world. The creation of the authority aims to bring these activities under international regulatory standards while addressing financial risks.

Under the new framework, companies seeking licences must hold permits from global regulators, comply with strict “Know Your Customer” (KYC) requirements, and provide detailed corporate disclosures.

The authority also prioritises curbing illegal financial activity while promoting growth in the fintech sector. Analysts believe this move could attract greater foreign investment and enhance transparency in Pakistan’s cryptocurrency market.

Pakistan charts its crypto roadmap

In March, the government established the Pakistan Crypto Council to regulate and integrate blockchain technology and digital assets into the national financial system. The council’s formation followed the appointment of Bilal bin Saqib as Chief Advisor to the Finance Minister for crypto affairs.

The PCC was tasked with promoting and incorporating blockchain and cryptocurrency innovations into Pakistan’s economic framework.

According to a Finance Division statement, the council represents a significant step in the country’s push toward digital finance, positioning Pakistan as a key player in the global shift toward blockchain technology.

The council is chaired by Finance Minister Muhammad Aurangzeb, with its board including the governor of the State Bank of Pakistan, the chairman of the Securities and Exchange Commission of Pakistan, the federal law secretary, and the federal IT secretary.