Pakistan’s New Crypto Licenses Initiative

The Pakistan Virtual Asset Regulatory Authority (PVARA) has taken a significant step by welcoming leading crypto exchanges and virtual asset service providers (VASPs) to submit Expressions of Interest (EoIs). This is an invitation to become part of Pakistan’s burgeoning digital asset market. The announcement, reported by local media outlet Dawn, emphasizes the country’s commitment to developing a transparent and inclusive digital financial ecosystem.

According to Bilal bin Saqib, PVARA chair and minister of state for crypto and blockchain, the initiative is designed to build a strong partnership with the world’s leading VASPs. The aim is to create a digital financial future that is both transparent and inclusive for Pakistan.

Eligibility for Crypto Licenses

Eligibility for these licenses is restricted to firms already licensed by recognized regulators such as the US Securities and Exchange Commission (SEC), the UK Financial Conduct Authority, the EU’s VASP framework, the UAE’s Virtual Assets Regulatory Authority, and the Monetary Authority of Singapore. This ensures that only credible and compliant firms can enter the Pakistani market.

Submissions for the license must include comprehensive details such as company profiles, existing licenses and jurisdictions, services proposed (like trading, custody, and payments), technology and security standards, assets under management, revenues, compliance track record, and a Pakistan-specific business model.

Framework for Crypto Licenses

The PVARA’s framework is designed to curb illicit financial activities while unlocking opportunities in fintech, remittance, and tokenization, including Shariah-compliant products via regulatory sandboxes. Established under the Virtual Assets Ordinance 2025, PVARA is responsible for licensing, regulating, and supervising VASPs in line with international standards set by the Financial Action Task Force (FATF), International Monetary Fund (IMF), and the World Bank.

This proactive approach by Pakistan could significantly boost its standing in the global crypto community. As reported by Cointelegraph, Pakistan has already climbed to third place in Chainalysis’ 2025 Global Crypto Adoption Index, marking it as one of the fastest-growing crypto markets worldwide.

Future Prospects with Crypto Licenses

In addition to regulatory advancements, Pakistan has also announced plans to establish a government-led Bitcoin Strategic Reserve. At the Bitcoin 2025 conference in Las Vegas, Bilal Bin Saqib highlighted this strategy as a reflection of Pakistan’s new pro-crypto regulatory stance.

However, the International Monetary Fund expressed concerns in July over Pakistan’s proposal to allocate surplus electricity for crypto mining, particularly in offering subsidized power to energy-intensive sectors, including Bitcoin miners.

The move to invite global firms to apply for crypto licenses is part of a broader initiative by the Pakistan Crypto Council, supported by the Ministry of Finance, to allocate 2,000 megawatts of surplus electricity for Bitcoin mining and AI centers.

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In a significant boost for crypto in Asia, Hong Kong is ready to extend tax breaks to crypto investments and add new trading licenses for platforms by year’s end, top officials announced today.

Expanding Tax Breaks to Drive Crypto Growth

Hong Kong is set to expand its financial incentives, with a fresh push aimed at cryptocurrencies. Speaking at Hong Kong Fintech Week, Christopher Hui, Secretary for Financial Services and the Treasury, detailed the government’s plans to include digital assets in tax concessions currently available to privately offered funds and family offices. Hui emphasized that this move, anticipated to roll out by the end of 2024, is geared toward enhancing Hong Kong’s attractiveness as a leading hub for crypto investments.

“By broadening tax concessions to encompass this wider range of eligible assets under our fund and family office regime, we aim to create a stronger pull for market participants,” Hui stated.

Crypto-Friendly Licensing Continues to Grow

Building on its pro-crypto policies, Hong Kong’s Securities and Futures Commission (SFC) began licensing crypto trading platforms in June 2023, allowing licensed exchanges to offer retail trading services. To date, three major platforms—OSL Exchange, HashKey Exchange, and HKVAX—have received licenses, with more anticipated by year’s end. According to Hong Kong’s Financial Secretary Paul Chan, the SFC is actively processing additional applications and plans to issue more licenses in the coming months.

Stablecoin Legislation and OTC Regulations on the Horizon

Hong Kong’s crypto framework extends beyond just trading. The Hong Kong Monetary Authority (HKMA) aims to pass stablecoin legislation this year after launching a stablecoin regulatory sandbox in March. Over-the-counter (OTC) crypto trading regulations are also under review, with a second consultation planned for next year. The government intends to establish a licensing framework for crypto custodians to further protect investor assets.

With these initiatives, Hong Kong cements its position as a progressive, crypto-friendly jurisdiction, setting the stage for substantial growth in the digital asset market.

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