Crypto Companies Welcomed to Tap into a Market of 40 Million Users

Pakistan’s cryptocurrency authority has officially encouraged significant foreign exchanges and digital asset service providers to apply for local permits, initiating a fresh phase for the nation’s crypto market.

As per PVARA, the invitation comes through an Expression of Interest initiative and follows the enactment of a new Virtual Assets Ordinance earlier this year.

Pakistan: Expression Of Interest Initiated

According to reports, the Pakistan Virtual Asset Regulatory Authority (PVARA) is urging established cryptocurrency companies to present EOIs if they wish to function in the country’s market.

The authority states it will accept submissions from international exchanges and VASPs that adhere to the established guidelines. This action is aimed to create a formal, supervised route for global participants to cater to local users.

Eligibility And Compliance Guidelines

It has been revealed that candidates must already possess licenses in at least one recognized region, including the US, UK, EU, UAE, or Singapore.

They are also required to demonstrate robust anti-money laundering, counter-terrorism financing, and KYC procedures as part of their applications. PVARA has requested firms to submit company overviews, operational details, and security strategies when expressing interest.

As of today, the market capitalization of cryptocurrencies was estimated at $3.94 trillion. Chart: TradingView

Market Size And Figures

Authorities in Pakistan estimate the nation’s virtual-asset user base at approximately 40 million individuals, with annual trading volumes reaching around $300 billion, figures that highlight the scope of the opportunity and the challenge for regulators.

These statistics are being referenced by PVARA and various local media as part of the rationale for integrating international exchanges into a regulated framework.

Image: TechJuice

Regulatory Context And Timing

The Virtual Assets Ordinance, which established PVARA, came into force earlier this year, granting the new authority the power to license and oversee virtual asset operations throughout Pakistan.

Officials from the central bank and finance departments have indicated that the regulations aim to harmonize local protocols with global standards promoted by organizations such as the FATF. This initiative follows months of preparation that included discussions regarding a potential pilot for a central bank digital currency.

Industry analysts assert that regulated entry could lure established exchanges and assist in safeguarding consumers, while also making it more difficult for unlawful activities to conceal themselves in unregulated channels.

Conversely, businesses confront compliance expenses and the necessity to align with local regulations. Some experts highlight that establishing rules is one matter; enforcing them is another.

The effectiveness of oversight will determine whether the licensing initiative achieves its objectives.

Featured image from PlanetofHotels.com, chart from TradingView

Editorial Process for bitcoinist is focused on providing meticulously researched, precise, and impartial material. We maintain rigorous sourcing standards, and every page undergoes thorough examination by our team of leading technology specialists and seasoned editors. This process guarantees the integrity, pertinence, and value of our content for our audience.