Pakistan is taking steps to establish itself as a regional center for digital assets by opening its doors to international crypto companies. Since the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) in July, companies can obtain licenses to operate in the country's crypto market.
Creation of PVARA and Licensing Requirements
The finance ministry states that only companies licensed in major jurisdictions such as the US, EU, or Singapore will be allowed to operate. Applicants must provide evidence of capital thresholds, effective security systems, and compliance histories.
Sharia Compliance for Digital Assets
A significant feature of Pakistan’s approach is the requirement for compliance with Islamic principles. This will be overseen by a committee of Sharia scholars. Bilal bin Saqib, the chair of PVARA, stated that the authority aims to create a transparent and decentralized platform that balances innovation and regulation.
Market Potential and Requirements for Firms
Pakistan highlights its potential with over 40 million active users and an annual trading volume exceeding $300 billion. Applicants must disclose existing licenses, operational details, and compliance histories. The government emphasizes its commitment to establishing a regulated crypto economy by inviting international companies.
Pakistan showcases its ambition to take a leading role in the cryptocurrency market by creating a regulated ecosystem focusing on Sharia compliance and user protection. This presents new opportunities for international players in the crypto sphere.
