Leading exchanges and virtual asset service providers (VASPs) have been invited to apply for licensing under the new federal framework in Pakistan, which has opened its doors to foreign cryptocurrency companies.

According to a report by local news source Dawn, the Pakistan Virtual Asset Regulatory Authority (PVARA) requested that large cryptocurrency companies file Expressions of Interest (EoIs) on Saturday in order to join the nation's digital asset market.

Bilal bin Saqib, the chair of PVARA and the minister of state for blockchain and cryptocurrency, stated that this EoI is an invitation to the top VASPs in the world to collaborate with us in creating an open and inclusive digital financial future for Pakistan.

Only companies that currently hold licenses from reputable authorities, such as the Monetary Authority of Singapore, the US Securities and Exchange Commission (SEC), the UK Financial Conduct Authority, the EU's VASP framework, and the UAE's Virtual Assets Regulatory Authority, are eligible. Company profiles, current licenses and jurisdictions, prospective services (including trading, custody, and payments), technology and security standards, assets under management, revenues, compliance history, and a business strategy unique to Pakistan should all be included in submissions. According to PVARA, the framework aims to prevent illicit financing while opening up opportunities for fintech, remittance, and tokenization, including Shariah-compliant products, through regulatory sandboxes.

According to guidelines established by the World Bank, International Monetary Fund, and Financial Action Task Force (FATF), PVARA was established under the Virtual Assets Ordinance 2025 with the responsibility of licensing, regulating, and overseeing VASPs.

In Chainalysis' 2025 Global Crypto Adoption Index, Pakistan jumped six spots to third place, making it one of the fastest-growing cryptocurrency markets globally, according to Cointelegraph.

Pakistan revealed plans to create a government-led Bitcoin Strategic Reserve in May. "The move reflects Pakistan's new pro-crypto regulatory approach," Bilal Bin Saqib stated during the Bitcoin 2025 conference in Las Vegas. As part of a project spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance, the nation also set aside 2,000 megawatts of excess power for Bitcoin (BTC) mining and artificial intelligence facilities.

The IMF, however, voiced reservations in July about Pakistan's intention to use excess electricity for cryptocurrency mining and turned down a plan to provide subsidized power to energy-intensive businesses, such as Bitcoin miners.