PVARA Crypto License Eligibility Checker
Check Your Eligibility
Determine if your company meets the basic requirements for a Pakistan Virtual Asset Regulatory Authority (PVARA) license.
Eligibility Status: Please check your eligibility
Key Requirements
- Only companies licensed by top-tier global regulators (SEC, FCA, MAS, VARA, etc.) can apply
- Minimum 50-page application dossier required
- 3-month minimum processing time
- Shariah-compliant products receive priority review
- Must have local compliance presence in Pakistan
- No access to Pakistani banking infrastructure
Pakistan has changed its stance on cryptocurrency - not by banning it, but by trying to control it. In July 2025, the government launched the Pakistan Virtual Asset Regulatory Authority (PVARA), a new federal agency with the power to license and oversee all crypto exchanges and digital asset service providers. This isn’t just a policy tweak. It’s a full-scale regulatory overhaul designed to bring crypto into the formal financial system - if you meet strict international standards.
Who Can Apply for a Crypto License in Pakistan?
You can’t just open a crypto exchange in Pakistan and start trading. PVARA only accepts applications from companies already licensed by top-tier global regulators. That means if you’re based in the U.S., you need SEC approval. If you’re in the UK, you must be registered with the FCA. Firms from the EU, Singapore (MAS), or the UAE (VARA) are also eligible. No exceptions. No startups. No unregulated platforms.
This isn’t about protecting local businesses. It’s about filtering out bad actors. Pakistan has a history of being flagged by the Financial Action Task Force (FATF) for weak anti-money laundering controls. PVARA is using international licenses as a shortcut to ensure only firms with proven compliance systems can enter the market. Think of it like a visa: you need a passport from a trusted country before you can even apply.
What Documents Do You Need to Submit?
The application isn’t a form you fill out in 10 minutes. It’s a 50-page dossier. Here’s what PVARA demands:
- Full company profile - ownership structure, board members, headquarters, subsidiaries
- Copies of existing licenses from recognized regulators, including jurisdiction and expiration dates
- Detailed description of services: trading, custody, payments, staking, tokenization
- Technical security specs: cold storage protocols, encryption, penetration test results
- Assets under management (AUM) and revenue figures for the last three fiscal years
- History of regulatory actions or fines from other jurisdictions
- A clear Pakistan-specific business model: how you’ll serve local users, handle rupee conversions, and comply with local tax rules
All documents must be in PDF format. The email subject line must read: 'EoI VASP Licensing [Your Company Name]'. Miss the format? Your application gets rejected before it’s even opened.
Compliance Is Non-Negotiable
PVARA doesn’t just want your paperwork. It wants proof you’ve built compliance into your DNA. Every applicant must show:
- Full KYC (Know Your Customer) procedures for all users - including ID verification, address proof, and source-of-funds checks
- Real-time AML (Anti-Money Laundering) monitoring tools that flag suspicious transactions
- CFT (Combating the Financing of Terrorism) controls aligned with FATF guidelines
- A dedicated compliance officer based in Pakistan or with direct oversight of local operations
There’s no room for third-party tools that don’t meet local standards. If your KYC system is built for the U.S. but can’t verify Pakistani CNICs, it won’t pass. You’ll need to adapt your tech stack - or partner with a local identity verification provider.
Shariah-Compliant Crypto Is a Priority
Pakistan is the world’s fifth-largest Muslim-majority country. PVARA knows that. That’s why it created regulatory sandboxes specifically for Shariah-compliant crypto products. This isn’t a side note - it’s a core part of the strategy.
Think about it: tokenized Sukuk, halal staking pools, and interest-free lending platforms could become major offerings. PVARA is actively inviting firms with Islamic finance expertise. If your exchange can prove your tokens don’t involve riba (interest), gharar (uncertainty), or haram activities, you get faster review and potential pilot status.
Several global exchanges are already working with Pakistani scholars to design halal crypto products. This could make Pakistan a regional hub for ethical digital finance - if they execute it right.
There’s a Three-Month Wait - And It’s Not a Suggestion
Don’t expect a quick approval. PVARA has made it clear: the minimum processing time is three months. That’s from the day they receive your complete application to the day you get your license. No exceptions. No expedited paths.
Why so long? Because they’re reviewing every file manually. No batch processing. No automation. Each application is assessed by a team of compliance officers, legal experts, and cybersecurity specialists. Rolling applications mean they’re not waiting for a deadline - they’re evaluating as they come in. So if you apply in August, you might get approved in November. Apply in October? You’re looking at January 2026.
This slow pace is intentional. Pakistan wants to avoid the mistakes of other countries that rushed crypto regulation and ended up with scams, collapses, and public distrust.
The Big Contradiction: PVARA vs. State Bank of Pakistan
Here’s where things get messy. While PVARA is inviting crypto firms to operate legally, the State Bank of Pakistan (SBP) still says cryptocurrency is illegal under banking law.
That means:
- Even if you have a PVARA license, you can’t open a bank account in Pakistan for your exchange.
- Local banks can’t process crypto-related payments - even for legitimate, licensed operators.
- Users can’t deposit rupees directly into your platform through traditional banking channels.
This creates a legal gray zone. PVARA says you’re allowed. SBP says you’re not. And no one has clarified which rule wins. Analysts call it a paradox. The government is trying to have its cake and eat it too - promoting crypto for innovation while blocking the financial plumbing that makes it work.
Until this conflict is resolved, exchanges will rely on over-the-counter (OTC) traders, foreign bank accounts, or peer-to-peer networks to move money. That’s risky, expensive, and not scalable.
What About Bitcoin Mining?
In early 2025, Pakistan announced plans to allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers. It sounded like a bold move - until the IMF stepped in.
The IMF rejected the proposal, warning that subsidized power for mining would strain the national grid and cost taxpayers billions. The plan is still under review. No final decision has been made. For now, mining remains unregulated and unofficial.
If the government ever approves mining, it will likely be under strict conditions: energy efficiency standards, export-only operations, and no domestic consumption of subsidized power. But for now, focus stays on exchanges and trading platforms - not mining rigs.
What’s Next for Crypto in Pakistan?
The Senate has already recommended moving the Pakistan Crypto Council from the Ministry of Finance to the Ministry of Information Technology. Why? Because crypto isn’t just about money - it’s about tech, infrastructure, and innovation.
Also, the Senate is pushing to amend the Virtual Assets Ordinance to remove contradictions between PVARA and SBP. A resolution is expected in early 2026. Until then, anyone applying for a license is operating in uncertainty.
Meanwhile, the SBP is preparing a pilot Central Bank Digital Currency (CBDC). That’s a big signal: the government still wants digital money - it just doesn’t want Bitcoin or Ethereum. It wants its own version.
So where does that leave you? If you’re a global exchange, Pakistan is a high-risk, high-reward market. The regulatory framework is clear - if you’re already compliant elsewhere. But the financial system isn’t ready. You’ll need patience, local partners, and a long-term view.
For users, it means more options - but also more confusion. You’ll be able to trade legally, but you won’t be able to easily cash out. That’s the reality of Pakistan’s crypto transition in 2025.
Final Take
PVARA’s licensing process is one of the most rigorous in emerging markets. It’s not designed to be easy. It’s designed to be safe. If you’re a legitimate, well-regulated firm with global experience, Pakistan wants you. But if you’re hoping to slip in under the radar, you won’t make it.
The country isn’t opening its doors to crypto out of enthusiasm. It’s doing it out of necessity - to attract investment, reduce remittance costs, and modernize its financial system. Whether it works depends on one thing: fixing the conflict between PVARA and the State Bank of Pakistan.
Until then, the license is just a piece of paper. The real challenge is making the system work.
Can a Pakistani company apply for a PVARA crypto license?
No. Only foreign companies already licensed by top-tier regulators like the SEC, FCA, MAS, or VARA can apply. Pakistani firms must partner with an eligible international entity to operate under the license. Local startups cannot apply directly.
How long does it take to get a crypto license in Pakistan?
The minimum processing time is three months from the date PVARA receives a complete application. There’s no expedited option. Applications are reviewed on a rolling basis, so timing depends on when you submit and how thorough your documentation is.
Can I use a Pakistani bank account for my licensed crypto exchange?
No. The State Bank of Pakistan still prohibits banks from dealing with cryptocurrency businesses. Even licensed exchanges cannot open bank accounts in Pakistan. They must use offshore accounts, OTC partners, or peer-to-peer networks to move funds.
Is Bitcoin mining legal in Pakistan?
Bitcoin mining is not officially legal or illegal - it’s unregulated. A government proposal to allocate 2,000 MW of power for mining was rejected by the IMF in mid-2025. No official policy exists, and no licenses are being issued for mining operations.
Do I need to be based in Pakistan to get a license?
No. You don’t need a physical office in Pakistan to apply. But you must demonstrate a clear plan to serve Pakistani users, including local language support, compliance with local tax rules, and a point of contact within the country. Many firms set up a local liaison or compliance officer.
Are Shariah-compliant crypto products allowed?
Yes. PVARA has created regulatory sandboxes specifically for Islamic finance-compliant crypto products. This includes halal staking, tokenized Sukuk, and interest-free lending platforms. Firms with expertise in Shariah-compliant finance are encouraged to apply and may receive priority review.
What happens if my application is rejected?
PVARA does not publish rejection reasons publicly. However, applicants are typically given feedback privately. You can reapply after fixing the gaps - usually within six months. Reapplying with stronger documentation, better compliance tools, or a local partnership improves your chances.
Can I operate a crypto wallet service without a license?
No. Any service that holds, manages, or transfers virtual assets on behalf of users - including wallets - falls under PVARA’s definition of a VASP. Operating without a license is illegal and could lead to fines, asset freezes, or criminal charges under Pakistan’s new Virtual Assets Ordinance.
Write a comment