For years, crypto in Pakistan lived in a legal gray zone. Millions of people bought and sold Bitcoin and other coins, but no law clearly allowed it, and banks were told to stay away. That changed in 2025 and 2026. Pakistan now has a real crypto law and a regulator. But there’s a catch: as of writing, no exchange has a full operating license yet.
The New Law: The Virtual Assets Act, 2026
Pakistan’s parliament passed the Virtual Assets Act, 2026, replacing an earlier temporary rule (the Virtual Assets Ordinance, 2025) with permanent law. It creates a dedicated regulator called the Pakistan Virtual Assets Regulatory Authority (PVARA).
PVARA’s job is to license and supervise anyone offering crypto services to people in Pakistan. That includes:
- Crypto exchanges (platforms where you buy, sell, or swap coins)
- Custodians (companies that hold crypto on your behalf)
- Wallet providers
- Token issuers (companies that create and sell new coins)
- Brokers and advisors
Under the Act, every one of these businesses must get a license from PVARA before it can legally operate in or from Pakistan. Operating without one is a criminal offense, not just a paperwork violation.
Is Any Exchange Actually Licensed Right Now?
No. Not yet.
In December 2025, PVARA gave Binance and $HTX something called a No Objection Certificate (NOC). An NOC is not a license. It’s an early-stage approval that lets an exchange register with Pakistan’s anti-money-laundering system and set up a local company, so it can later apply for a full license.
PVARA’s own chairman, Bilal bin Saqib, publicly stressed that the NOCs were “not a blanket approval”. Bitget has since entered the same pipeline, following the same NOC-first route.
So the current status of the biggest global exchanges operating in Pakistan is: approved to start the process, not approved to fully operate. PVARA says the full licensing regulations are still being finalized, with a public consultation on the detailed rules running through mid-2026.
What Happens If You Use an Unlicensed Exchange?
The penalties in the law target businesses, not ordinary users. The Act sets harsh punishments for companies that operate as unlicensed virtual asset service providers:
- Up to PKR 50 million in fines and up to 5 years in prison for operating an unlicensed virtual asset business
- Up to PKR 25 million in fines and up to 3 years in prison for promoting or advertising unauthorized virtual assets
These penalties apply to companies and individuals running platforms or promoting unlicensed schemes, such as operating a local unregistered exchange or running a promotional campaign for an unapproved token.
They are not written as a blanket ban on an individual simply owning crypto or trading on an offshore exchange from their phone.
Notably, as the law is new, its enforcement regulations are still being written, and Pakistani authorities have not published detailed guidance on individual user liability.
Why Banks Still Aren’t Fully on Board
For years, Pakistan’s central bank, the State Bank of Pakistan (SBP), told banks not to touch crypto at all. That changed in April 2026, when the SBP formally reversed its 2018 directive and allowed banks to open special accounts, but only for businesses that already hold a PVARA license. Since no exchange holds a full license yet, this door is open in theory but not yet in practice.
This is also why most everyday crypto buying in Pakistan still happens through P2P (peer-to-peer) trading — where a buyer and seller exchange rupees and crypto directly, often through an exchange’s built-in matching system, rather than through a bank transfer to the exchange itself.
What’s Coming Next
PVARA has laid out a phased plan:
- NOC stage (happening now) — exchanges register and prepare applications
- Full licensing regulations — currently in public consultation, expected to be finalized in 2026
- Full licenses issued — only after an exchange proves it meets requirements, including minimum capital, recognition from a major regulator abroad (like the US, EU, or Singapore), and compliance with Sharia (Islamic finance) principles, checked by a scholars’ committee
- Ongoing supervision — PVARA can suspend or cancel a license if a company breaks the rules later
The Bottom Line
Pakistan has gone from banning crypto in practice to building one of the most detailed regulatory frameworks in South Asia. That’s real progress. But “regulated” doesn’t mean “done” yet. Right now:
- No exchange holds a full PVARA license
- Binance, $HTX, and Bitget have only preliminary NOC approval
- Using an offshore exchange isn’t explicitly criminalized for individuals, but the legal picture is still forming
- Banks can’t yet serve exchanges directly, so P2P trading remains the norm
Ultimately, full licenses could arrive within 2026, and once they do, the legal landscape for everyday users will become much clearer.
Related: Pakistan Allows Banks to Serve Licensed Crypto Firms Under New Rules
