Pakistani Companies Must Seek Approval Before Any Crypto Test Projects, Says Regulator
Pakistani companies must seek approval before crypto test projects as regulator warns against unauthorized pilots, partnerships.
The Pakistan Virtual Assets Regulatory Authority (PVARA) has directed Pakistani companies to obtain prior approval before launching or even announcing any crypto-related test projects involving users in the country.
The advisory comes after several financial institutions publicly announced partnerships and trial initiatives — including stablecoin-based remittance solutions — without first engaging with the regulator.
In simpler terms, PVARA clarified that even “pilot projects”—small test versions of new crypto or blockchain services—cannot proceed without approval. These projects are typically used by companies to test new financial solutions, such as digital payments or cross-border transactions, on a limited scale before a full rollout.
Under the Virtual Assets Act, 2026, all activities related to virtual assets—including their issuance, transfer, custody, exchange, or facilitation—fall under PVARA’s regulatory authority. This also covers stablecoins and other blockchain-based systems.
The regulator warned that announcing such initiatives without prior authorization could lead to regulatory action, reputational risks, and compliance concerns, particularly in relation to international standards set by the Financial Action Task Force.
“Even if it is just a test project, prior approval is mandatory before any public announcement or rollout,” the advisory emphasized.
At the same time, PVARA reiterated its support for responsible innovation. Companies interested in exploring crypto-related solutions are encouraged to engage early with the regulator through official channels such as the Regulatory Sandbox or No-Action Relief Letters or by obtaining a No Objection Certificate (NOC).
The development highlights a more structured regulatory approach as Pakistan seeks to balance innovation in digital assets with compliance, transparency, and financial stability.
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