Pakistan has officially launched its regulatory framework for digital assets, marking a key milestone in the country’s efforts to bring the fast-growing cryptocurrency market under formal oversight. The Pakistan Virtual Assets Regulatory Authority (PVARA) has begun inviting international cryptocurrency exchanges to apply for licenses to operate within Pakistan.
Regulating One of the World’s Largest Unregulated Crypto Markets
Pakistan’s crypto ecosystem is among the largest unregulated markets globally, with nearly 40 million users and an estimated annual trading volume exceeding $300 billion. Recognizing the need for regulation in line with international standards, PVARA’s licensing process aims to ensure transparency, security, and compliance across the industry.
Also read: NCCIA Exposes Major Cryptocurrency Fraud Scheme in Pakistan
Licensing and Compliance Requirements
To offer crypto services in Pakistan, companies must:
- Hold valid licenses from recognized international regulators.
- Comply with stringent Know Your Customer (KYC) and anti-money laundering (AML) standards.
- Submit detailed company information during the licensing application.
These measures are designed to reduce risks related to fraud, money laundering, and financial instability, while protecting investors and fostering a trustworthy crypto environment.
Next Steps and Impact on the Crypto Market
- The licensing window has officially opened, and global crypto service providers are encouraged to submit their applications.
- Once licensed, exchanges and digital asset platforms will operate under PVARA’s jurisdiction, subject to ongoing compliance and audits.
- This regulatory advance is expected to attract institutional investment and encourage innovation within Pakistan’s crypto sector.
What This Means for Pakistani Crypto Investors
With regulation officially underway, investors can expect enhanced market integrity, improved security, and clearer guidelines for participation. Licensed exchanges will offer safer trading environments, helping reduce scams and regulatory ambiguities that have previously hindered growth.
How Crypto.pk Supports You
Crypto.pk will continue providing up-to-date coverage on Pakistan’s evolving crypto regulations:
- Regulatory Insights: Clear explanations of licensing and compliance requirements.
- Investment Guidance: Tips to navigate the newly regulated crypto landscape safely.
- Shariah Compliance: Ethical frameworks aligned with Islamic finance principles.
Stay informed and invest confidently in Pakistan’s regulated crypto market.
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