Pakistan’s virtual assets regulator said on Sunday that issuing No Objection Certificates to global cryptocurrency exchanges Binance and HTX was not a blanket approval. It said that it marks the first step in a tightly supervised market entry process.

The Pakistan Virtual Assets Regulatory Authority (PVARA) has clarified that the NOCs granted to Binance and HTX are part of a risk-mitigated, phased and closely monitored framework. However, it further added that it was not blanket or unconditional authorization to operate in Pakistan.

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While speaking to journalists during press briefing on Sunday, PVARA Chairman Bilal Bin Saqib said the move represented a historic moment for the country’s digital asset sector.

He termed the NOCs as the first practical step toward opening a regulated, transparent and internationally compliant pathway for global exchanges.

Under the structured approach, Binance and HTX may begin preparatory activities such as registering with Pakistan’s anti-money-laundering system. They may also engage with regulators to establish local subsidiaries.  But they will have to complete full regulatory requirements before obtaining formal licences.

The framework emphasises anti-money-laundering, counter-terrorism financing safeguards and transparency of ownership and control.

It requires fitness and propriety assessments before an entity can proceed toward licensing. Saqib stressed that this phased model is aligning Pakistan with international regulatory practices seen in major financial centres. There, exchanges are first brought under supervision before commercial launch.

Saudis and many global regulators are increasingly adopting phased entry frameworks to balance innovation with financial stability and consumer protection.

Pakistan’s authority expects to enforce clear and enforceable licensing timelines for compliant entities progress.

The regulator also noted that the move reflects a shift from years of regulatory uncertainty toward structured oversight of digital assets.

Pakistan has been projected as one of the world’s largest crypto adoption markets with an estimated 30-40 million users. It has seen robust digital asset activity despite the absence of a comprehensive regulatory regime.

Saiban emphasised the decision is not an endpoint. However, he said that it lays the foundation for a stronger domestic digital asset ecosystem to serve as a model for other emerging markets. He called on the country’s youth to help build local expertise and innovation to enable Pakistan’s regulatory framework to grow alongside global developments.

The step follows broader digital-finance initiatives in Pakistan, including an MoU with Binance to explore the tokenisation of up to $2 billion in sovereign assets.

The assets included bonds and commodity reserves, aimed at boosting liquidity and attracting investment.

PVARA was established under the Virtual Assets Ordinance, 2025, aimed at issuing licenses and supervise virtual asset service providers. The objective also is to align Pakistan’s digital asset market with international standards set by bodies such as the Financial Action Task Force (FATF).

The regulator’s issuance of conditional NOCs to Binance and HTX has marked a key milestone to move  Pakistan toward formal regulation, consumer protection, and financial integrity in a sector to grow rapidly without long-standing local licensing rules.