Pakistan’s crypto regulator has formally invited large overseas exchanges and virtual asset service providers to apply for local licenses, opening a new chapter for the country’s crypto market.
According to PVARA, the call comes through an Expression of Interest process and it follows the passage of a new Virtual Assets Ordinance this year.
They are also expected to show strong anti-money laundering, counter-terrorism financing and KYC procedures as part of their submissions. PVARA has asked firms to provide company profiles, details of operations and security plans when they express interest.
Pakistan’s authorities estimate the country’s virtual-asset user base at about 40 million people, with annual trading volumes around $300 billion, figures that underline the scale of the opportunity and the challenge for regulators.
The Virtual Assets Ordinance, which set up PVARA, came into effect earlier this year and gives the new authority powers to license and oversee virtual asset activity across Pakistan.
Industry observers say regulated entry could attract established exchanges and help protect consumers, while also making it harder for illicit activity to hide in unregulated channels.
At the same time, companies face compliance costs and the need to adapt to local rules. Some experts point out that passing rules is one thing; enforcing them is another.
The quality of oversight will decide whether the licensing program meets its aims.
Featured image from PlanetofHotels.com, chart from TradingView
