Pakistan issues NOC to Binance, HTX under phased virtual assets framework

The Pakistan Virtual Assets Regulatory Authority (PVARA) has issued No Objection Certificates (NOCs) to Binance and HTX as part of efforts to establish a structured regulatory framework for virtual asset service providers in Pakistan.

PVARA said the NOCs were granted after a formal review conducted in coordination with relevant public-sector bodies. The assessment covered governance arrangements, compliance systems, risk management controls and alignment with Pakistan’s evolving regulatory requirements for virtual asset activities.

The authority clarified that the NOCs do not constitute operating licences. Instead, they allow Binance and HTX to undertake limited preparatory and engagement activities under regulatory oversight. These include registration on the Financial Monitoring Unit’s goAML system as reporting entities, engagement with the Securities and Exchange Commission of Pakistan to incorporate local subsidiaries, preparation and submission of full virtual asset service provider licence applications once regulations are notified, and provision of AML-registered services after completion of goAML registration.

PVARA said the move reflects a phased and risk-based approach consistent with international regulatory practices, aimed at supporting innovation while ensuring market integrity, consumer protection and financial stability.

Finance Minister Senator Muhammad Aurangzeb said the structured NOC framework demonstrates Pakistan’s commitment to responsible innovation and financial discipline.

The authority said it is also advancing digital oversight tools as part of its regulatory development. PVARA has deployed AI-based systems for application evaluation, recruitment processes and regulatory document review to improve supervisory efficiency and align with global standards.

Chairman PVARA Bilal Bin Saqib said the issuance of the NOCs marks an initial step toward a fully licensed and regulated digital asset environment, with a focus on transparency, governance and risk management. He said the framework strengthens Pakistan’s alignment with FATF standards and reinforces AML and counter-terrorism financing safeguards.

Pakistan is currently ranked among the leading countries in crypto adoption, with an estimated 30 to 40 million users. Industry estimates place annual digital asset trading activity linked to Pakistan at over $300 billion. PVARA said it will continue issuing guidance on licensing standards, compliance obligations and supervisory expectations as subsequent phases of the regulatory framework are rolled out.