Islamabad, September 14, 2025 — The government of Pakistan has officially invited international cryptocurrency exchanges and virtual asset service providers (VASPs) to apply for licenses to operate in the country, marking a major shift in its approach to digital finance and crypto regulation.
A New Regulator and Legal Framework
Based on reports from CoinTelegraph, the initiative is being spearheaded by the Pakistan Virtual Asset Regulatory Authority (PVARA), established under the Virtual Assets Ordinance, 2025. This federal body is tasked with issuing licenses, regulating operations, and ensuring compliance with anti-money laundering and counter-terrorism financing standards in line with international norms.
Who Can Apply?
PVARA has launched a call for “Expressions of Interest” (EoI), specifically targeting foreign firms that are already licensed in reputable jurisdictions such as:
- The U.S. Securities and Exchange Commission (SEC)
- The U.K.’s Financial Conduct Authority (FCA)
- European Union VASP frameworks
- Regulators in Singapore, the UAE, and other recognized financial hubs
Applicants must provide detailed company profiles, proof of regulatory licenses, types of services planned in Pakistan (e.g., trading, custody, payments), technology and security standards, financial health, compliance records, and localized business plans.
Market Potential and Policy Goals
Pakistan represents a fast-growing crypto economy:
- An estimated 40 million crypto users
- Annual trading volumes surpassing $300 billion
The government’s objectives behind this policy include:
- Institutionalization & Compliance – bringing the massive informal crypto market under legal oversight, reducing risks of money laundering and terrorist financing.
- Attracting Global Investment & Technology – encouraging leading international exchanges and service providers to establish a local footprint.
- Promoting Financial Inclusion & Innovation – fostering fintech adoption, cross-border remittances, tokenization projects, and Shariah-compliant financial products.
Challenges and Global Reactions
Despite the positive momentum, several challenges remain:
- Energy Allocation – Pakistan has announced plans to allocate 2,000 MW of surplus electricity to Bitcoin mining and AI data centers, raising concerns from groups like the IMF about sustainability and power grid pressure.
- Regulatory Enforcement – translating laws into effective oversight and ensuring transparency will be critical.
- Consumer Protection – with rapid adoption, retail investors remain vulnerable to scams and volatility.
- Shariah Compliance – ensuring that crypto products align with Islamic finance principles while remaining competitive internationally.
Outlook: Pakistan’s Crypto Future
By opening its market to global players, Pakistan is signaling a clear pivot toward regulation, institutional adoption, and innovation. If successful, the licensing framework could transform the country into a South Asian hub for digital assets and Web3 innovation.
For Hotcoin and other global exchanges, this presents:
- New Market Opportunities – access to a massive untapped user base.
- Regulatory Clarity – reduced legal risks thanks to clearer frameworks.
- Innovation Potential – participation in sandbox programs and development of Shariah-compliant products.
Pakistan’s policy shift could prove to be one of the most significant developments for the region’s crypto industry in 2025, turning what was once an unregulated gray market into a regulated, globally integrated financial ecosystem.
Hotcoin Official Site: https://www.hotcoin.com
Hotcoin Twitter: https://x.com/HotcoinGlobal
Hotcoin Telegram: https://t.me/HotcoinEX
Hotcoin Chinese Twitter: https://x.com/hotcoinzh
Hotcoin Chinese Community: https://t.me/hotcoinglobalcn
Hotcoin YouTube: https://www.youtube.com/@hotcoinglobal