Pakistan has launched the licensing process for digital asset businesses as part of efforts to establish a formal regulatory framework for the country’s rapidly evolving cryptocurrency and digital finance sector.
Chairman of the Pakistan Virtual Regulatory Authority (PVRA) Bilal Bin Saqib said the authority had so far received 70 applications from companies seeking licences to operate in the digital assets sector.
Speaking about the regulatory process, Bilal Bin Saqib said companies that fulfil the requirements of the newly developed regulatory framework would be eligible to receive licences for the buying and selling of digital assets. He said the regulatory framework had been prepared within six months, describing the development as an important step towards bringing digital asset-related activities under a formal regulatory structure.
According to the PVRA chairman, the authority developed the necessary framework for digital asset regulation while using only 8 percent of its allocated budget during the current year. He said the remaining 92 percent of the budget had been returned to the national exchequer.
Pakistan to Present Digital Assets Policy at UN
Bilal Bin Saqib said Pakistan would also present a policy paper on digital assets and tokenisation at the United Nations for the first time. He claimed that Pakistan was leading discussions at the international level on the development of frameworks and regulations governing digital assets.
The initiative, he said, would provide Pakistan with an opportunity to contribute to the global debate surrounding digital finance, tokenisation and the regulation of emerging financial technologies.
The PVRA chairman also disclosed that discussions were continuing with the State Bank of Pakistan on ways to increase remittances through digital assets. He said stablecoins could provide a significantly cheaper mechanism for transferring money to Pakistan, potentially reducing the cost of remittances.
According to Bilal Bin Saqib, the cost of sending remittances could potentially be reduced from around 6 percent to approximately 1 percent through the use of stablecoins.
Pakistan is heavily dependent on overseas workers' remittances, making lower-cost and faster international money transfers an important area of interest for policymakers.
Licensing to Improve Crypto Monitoring
Bilal Bin Saqib further said that licensing digital asset businesses would help authorities improve oversight of cryptocurrency transactions. He said the formal licensing regime would make it possible to trace cryptocurrency transactions, helping enhance transparency and regulatory monitoring within the sector.
The move is aimed at bringing digital asset businesses into a regulated environment rather than allowing cryptocurrency-related activities to operate outside formal oversight.
The development marks a significant step in Pakistan’s efforts to establish rules for digital assets while exploring their potential use in areas such as remittances, tokenisation and digital finance.
Reporter Waqas Azeem