Key Takeaways
- Pakistan has granted preliminary approval to global crypto exchanges Binance and HTX to establish local operations.
- The Pakistan Virtual Assets Regulatory Authority (PVARA) issued No Objection Certificates (NOCs) as part of a phased regulatory framework.
- The move aims to align Pakistan's cryptocurrency regulation with international Anti-Money Laundering (AML) standards set by the FATF.
- Exchanges can now engage with the Securities and Exchange Commission of Pakistan (SECP) to form local entities and prepare for full licensing.
- High-level meetings between Pakistani officials and crypto industry leaders underscore the country's commitment to becoming a digital asset hub.
In a significant step towards formalizing its digital asset market, Pakistan has granted preliminary clearance to leading global cryptocurrency exchanges Binance and HTX to seek local operating licenses. This development marks a pivotal moment in the nation's evolving cryptocurrency regulatory landscape.
Regulatory Framework Takes Shape
The Pakistan Virtual Assets Regulatory Authority (PVARA) announced it has issued No Objection Certificates (NOCs) to both exchanges. These certificates authorize them to begin the process of registering local subsidiaries and engaging with the Securities and Exchange Commission of Pakistan (SECP). The NOCs are a foundational component of Pakistan's phased strategy for regulating crypto asset service providers.
“Strong governance, AML and CFT compliance remain central as Pakistan builds a trusted digital asset ecosystem,” PVARA stated.
The regulatory approach is explicitly designed to ensure alignment with the Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) policies of the Financial Action Task Force (FATF). Pakistan's Finance Minister, Muhammad Aurangzeb, emphasized the strategic importance of this move, stating in a report: “The introduction of this structured NOC framework demonstrates Pakistan’s commitment to responsible innovation and financial discipline.”
High-Level Industry Engagement
The regulatory progress follows high-level discussions between Pakistani officials and prominent figures in the blockchain industry. Finance Minister Aurangzeb met with Binance CEO Richard Teng, its co-founder Changpeng “CZ” Zhao, and Tron founder Justin Sun, who is a global adviser to HTX.
Binance CEO Richard Teng hailed the NOC as a “meaningful milestone for Binance in Pakistan,” noting that the exchange has also obtained an AML registration from PVARA. He added, “Looking forward to building a safe, transparent and future-ready digital-asset ecosystem together.”
Vision for a Digital Future
The push for regulation has been championed by PVARA Chairman Saqib, who serves as the Minister of State for Digital Assets. He has advocated for a forward-looking perspective on Bitcoin and blockchain technology, framing them as critical infrastructure rather than mere speculative assets.
“We see Bitcoin, digital assets, and blockchain not just as speculation but as infrastructure. Not as noise, but as a foundation of a new financial rail for the global south,” Saqib stated at the Bitcoin MENA Conference.
This regulatory advancement follows PVARA's first board meeting in August, where initial licensing, taxation policies, and international engagement were proposed. The Pakistan Crypto Council (PCC), which lists CZ as an adviser, has contributed to this regulatory progress, signaling a collaborative effort between the government and the crypto industry.
This move positions Pakistan to potentially become a significant player in the global digital economy, aiming to attract legitimate crypto businesses while ensuring robust consumer protection and financial integrity.
