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Pakistan Implements Criminal Liability for Illegal Cryptocurrency Operators, 2026/03/06 19:56:59
The Parliament of Pakistan has enacted legislation mandating that cryptocurrency firms wishing to operate within the country obtain a license. Engaging in business without this authorization will be deemed a criminal offense.
Under the new law, operating crypto platforms without a license could result in fines of up to 50 million Pakistani rupees (approximately $179,000) or imprisonment for up to five years for business founders. Separate penalties are established for unauthorized issuance of virtual assets or promotional activities: fines of up to 25 million rupees (around $89,000) and potential imprisonment for up to three years.
The Pakistan Virtual Assets Regulatory Authority (PVARA) will be responsible for issuing licenses and overseeing the cryptocurrency market. It will have the authority to suspend or revoke previously granted licenses and to establish designated “virtual asset zones” to attract blockchain companies, as outlined in the legislation.
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In September of the previous year, PVARA first invited foreign cryptocurrency firms to apply for licenses. The regulator aims to engage with an audience of approximately 40 million local users. Applicants must meet stringent criteria: the company must be recognized in one of the major jurisdictions (such as the USA, European Union, or Singapore), meet minimum capital requirements, and ensure that its services comply with Sharia law—this compliance will be monitored by a committee of scholars specializing in Islamic finance.
In December, two major exchanges received No Objection Certificates from PVARA, marking the initial phase of the official licensing process. One of the first exchanges to obtain such a document was HTX. Binance also received preliminary approval. These permits enable the exchanges to register with Pakistan’s Financial Monitoring Unit for compliance checks against anti-money laundering requirements and to prepare comprehensive license applications.
At the end of the year, Binance founder Changpeng Zhao stated that Pakistan could emerge as a global leader in cryptocurrency by 2030. According to the crypto entrepreneur, the government is actively promoting the regulation of the crypto market, and the demand for digital assets among the population is rapidly increasing.
