Crypto operators given September 5 deadline to seek NOCs

Dawn reported that the Pakistan Virtual Assets Regulatory Authority (PVARA) has given existing crypto service firms until September 5, 2026 to apply for no-objection certificates. Any provider that misses the cutoff will have to halt its activities, the regulator announced in a release. PVARA also declared the licensing framework for digital assets operational, pointing to the country's shift from a main law to detailed rules and an open application process within half a year.

The State Bank has replaced its earlier curbs on virtual currencies with instructions letting regulated lenders open accounts for licensed providers and their clients. Banks must keep separate rupee client accounts that earn no return, so customer funds stay apart, and apply strict anti-money laundering and know-your-customer checks. Commercial banks, by contrast, may not trade, invest in or hold virtual assets with their own money or depositors' funds, and their role is confined to supplying banking channels and monitoring transfers for approved operators.

Bankers said crypto investing is both highly risky and highly profitable, as prices swing by large margins. They argued this volatility is why major central banks across the world have been unwilling to regulate virtual assets. Market observers estimate Pakistanis have channelled several billion dollars into the sector, even though the products are not widely held by ordinary citizens.