ISLAMABAD: Pakistan’s top virtual asset regulatory official said on Sunday the country was laying the foundation for a phased and tightly supervised crypto framework after granting conditional approvals to two global exchanges, signaling a shift from years of regulatory ambiguity toward formal oversight of digital assets.

The Pakistan Virtual Assets Regulatory Authority (PVARA) said this week it had issued no objection certificates (NOCs) to global crypto exchanges Binance and Huobi (HTX). Pakistan has also signed a memorandum of understanding with them to explore what the finance ministry described as the “tokenization” of up to $2 billion in sovereign bonds, treasury bills and commodity reserves, an initiative aimed at boosting liquidity and attracting investors.

“The no objection certificate given to Binance and Huobi is the first practical step of this new thinking,” PVARA chief Bilal bin Saqib said at a briefing. “Let me make it clear that this NOC is not a shortcut. This is not a blanket approval.”

He said the approvals marked the start of a risk-mitigated, phased and supervised entry framework, adding that platforms would be subject to strict anti-money laundering and counter-terrorism financing requirements, ownership transparency checks and enforcement-linked licensing timelines.

“This is not a new experiment,” he said, pointing to phased regulatory approaches adopted in financial centers such as Dubai, the United Kingdom and Singapore, where firms are first brought under supervision before being allowed to expand operations.

Pakistan is among the world’s largest crypto adoption markets, with estimates putting the number of users between 30 and 40 million, despite the absence of a comprehensive regulatory framework. Saqib said ignoring the sector was no longer viable, warning that unregulated adoption posed greater risks to the economy and consumers.

“We don’t want to promote crypto,” he said. “We want to regulate crypto. Adoption is already there.”

​He said the framework was designed to prepare Pakistan for longer-term developments in digital finance, including tokenized assets, compliance technology, blockchain analytics and digital payment infrastructure, while ensuring that local talent is channeled into regulated and productive use.

“For the international community, the message is clear,” Saqib said. “Pakistan is not running away from innovation. Pakistan is welcoming innovation. Pakistan is regulating innovation.”