ISLAMABAD: The Pakistan Virtual Assets Regulatory Authority (PVARA) announced on Friday that it has granted no objection certificates (NOCs) to global crypto exchanges Binance and HTX, the latest in a series of moves by Islamabad to regulate its fast-growing virtual assets market. 

PVARA said the NOCs were granted following a review process it conducted with public sector stakeholders which focused on governance structures, compliance frameworks, risk management controls and alignment with Pakistan’s emerging regulatory requirements for virtual asset activities.

Pakistan has been moving to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight and encouraging innovation in blockchain-based financial services.

“The introduction of this structured NOC framework demonstrates Pakistan’s commitment to responsible innovation and financial discipline,” Finance Minister Muhammad Aurangzeb was quoted as saying in a press release issued by PVARA. 

The regulatory authority said the NOCs allow Binance and HTX to conduct preparatory and engagement activities within Pakistan under “defined regulatory oversight,” clarifying that it does not constitute a “full operating license.”

The NOCs allow Binance and HTX to begin registration on the FMU goAML, Pakistan’s anti–money laundering reporting platform, as reporting entries. It also allows them to engage with the Securities and Exchange Commission of Pakistan (SECP) regulator to incorporate their subsidiaries in the country. 

HTX and Binance can also prepare and submit their full VASP license applications once licensing regulations are promulgated and provide anti-money laundering (AML) registered services after the completion of their goAML registration.

“PVARA will continue to engage with domestic and international stakeholders as it advances subsequent phases of its regulatory framework,” the authority said. 

“Additional guidance regarding licensing standards, compliance obligations and supervisory expectations for virtual asset service providers will be issued in due course.”

Chairman PVARA Bilal Bin Saqib said issuing the NOCs marks the first step toward a fully licensed and regulated environment for digital assets in Pakistan. 

“By adopting a phased and internationally aligned approach, Pakistan is ensuring that only well-governed, fully compliant global platforms progress toward full licensing,” Saqib was quoted as saying by PVARA.

According to PVARA, Pakistan already ranks at number three in crypto adoption and is home to an estimated 30 to 40 million users.

It said industry-wide assessments estimate that annual digital asset trading activity linked to Pakistan exceeds $300 billion. 

PAKISTAN, BINANCE SIGN MoU FOR BLOCKCHAIN-BASED INNOVATION

Separately, Pakistan’s finance ministry and Binance signed a memorandum of understanding (MoU) establishing a framework to explore potential collaboration on the tokenization and blockchain-based distribution of Pakistan’s real-world and sovereign assets, the Finance Division said. 

The Finance Division said the step was a significant one to leverage emerging financial technologies to strengthen Pakistan’s capital markets and enhance global investor access. 

These assets include government bonds, treasury bills, commodity reserves and other federally owned assets, the Finance Division said. 

“Subject to applicable laws, policies and regulatory approvals, the initiative may involve assets of up to $2 billion, with the objective of enhancing liquidity, transparency and international market accessibility,” it added. 

Under the proposed arrangement, Binance and/or its affiliates may provide technical expertise, advisory support, training and capacity building to enable Pakistan to assess modern, compliant blockchain infrastructure. 

The Finance Division said the collaboration aims to explore secure and transparent digital platforms that could facilitate broader participation by international investors, while fully respecting Pakistan’s regulatory framework and sovereign control.