Pakistan Welcomes Global Crypto Exchanges to Apply for Operating Licenses

Pakistan is taking significant steps to license and regulate international cryptocurrency exchanges as it aims to formalize its expanding digital asset market.

Key Takeaways

The Pakistan Virtual Assets Regulatory Authority (PVARA) is now accepting applications from global cryptocurrency exchanges.
Applicants must be regulated by established authorities like the U.S. SEC, UK FCA, or Singapore MAS.
Detailed submissions must include security standards, compliance history, and a Pakistan-specific business plan.
The initiative is expected to enhance investor protection and attract major global exchanges.
Pakistan plans to establish a sovereign Bitcoin reserve and has engaged in partnerships focusing on crypto with El Salvador.
The government aims to allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers.

Pakistan invites global crypto exchanges to apply for operating licenses - 1

Licensing Global Crypto Exchanges

The Pakistan Virtual Assets Regulatory Authority (PVARA) has initiated the licensing process for global cryptocurrency exchanges planning to operate within the country. The authority invites international trading platforms and service providers to submit their applications for legal approval.

Local media indicates that applicants must already hold regulation from recognized authorities, such as the U.S. Securities and Exchange Commission (SEC), the UK's Financial Conduct Authority (FCA), or Singapore's Monetary Authority of Singapore (MAS). Exchanges are required to provide comprehensive applications that include standards for technology and security, a record of compliance, financial disclosures, and a business plan tailored for Pakistan.

Oversight for these operations will be coordinated by several local bodies, including the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan, and the Federal Board of Revenue. This collaboration is intended to ensure adherence to anti-money-laundering and counter-terrorism financing regulations. According to industry data, Pakistan's crypto market is one of the fastest-growing globally, with over 40 million users and an estimated annual trading volume of approximately $300 billion.

The swift growth of this market has made formal regulation imperative. Authorities believe that the new licensing framework will not only bolster investor protection but also promote legal operations of significant global exchanges within the country.

Pakistan’s Broader Ambitions in Cryptocurrency

Pakistan is undertaking various ambitious moves to strengthen its position in the global cryptocurrency arena, indicating that its goals exceed simply licensing exchanges.

Earlier this May, Bilal Bin Saqib, the head of the newly formed Pakistan Crypto Council, announced plans for a sovereign Bitcoin reserve. This initiative aims to create a robust national strategy for holding digital assets, with financial input from experienced industry figures such as Michael Saylor from Strategy. Funding for this reserve is expected to come from Bitcoin currently possessed or seized by the government.

Additionally, Pakistan has established a collaborative partnership with El Salvador, signing a memorandum of understanding to exchange knowledge about sovereign Bitcoin reserves, mining operations, and blockchain regulatory frameworks. Recently, Pakistani delegates engaged with El Salvador's National Bitcoin Office to explore opportunities for joint research and technical training to enhance Pakistan’s crypto infrastructure.

Mining is another critical area of focus for the government. According to energy planners, Pakistan plans to allocate 2,000 megawatts of electricity specifically for Bitcoin mining farms and AI data centers. This initiative aims to leverage underutilized energy from hydropower and solar sources, creating new revenue streams while also stabilizing the national grid.

These developments demonstrate Pakistan's commitment to integrating cryptocurrency into its digital economy and enhancing its influence in the global cryptocurrency market.