After having set up a crypto regulatory authority, Pakistan is now moving forward with its crypto plans. Over the weekend, Pakistan invited international crypto firms to set up their operations in the country. Crypto companies interested to act on the offer can now submit “Expressions of Interest” (EOLs) for the same, local publication Dawn has reported.
The Pakistan Virtual Asset Regulatory Authority (PVARA) will oversee the applications. The operations of these crypto firms in Pakistan will reportedly be aligned with the international compliance guidelines established by the World Bank, International Monetary Fund, and the Financial Action Task Force.
The country is looking to ensure that cryptocurrencies and businesses related to virtual assets are not exploited to facilitate illegal activities like money laundering and terror financing.
“This EoI is our invitation to the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan,” Dawn quoted Pakistan’s crypto czar, Bilal bin Saqib as commenting on the development.
Virtual asset service providers (VASPs) already licensed by recognized global regulatory frameworks are eligible to apply for registrations in Pakistan. These regulators include the U.S. SEC, UAE’s VARA, as well as the Monetary Authority of Singapore among others.
Companies looking to apply the EOLs must provide detailed summaries of company profiles, business histories, and licensing details. Additionally, the firms will also have to provide comprehensive details on their crypto custody technologies, revenue, assets under management, and international compliance histories.
The PVARA has directed interested VASPs to submit these details in a PDF format through mail with the subject line reading – “EoI VASP Licensing — [Company Name]”.
The crypto sector, presently worth $4.04 trillion, emerged as a focus point for Pakistan earlier this year, after U.S. President Donald Trump initiated pro-crypto policy overhauls in the country — leading to a major rally in the market as well as a positively changed sentiment of banks towards the industry.
In March, Pakistan’s finance ministry officially announced the creation of the Pakistan Crypto Council (PCC) to administer the regulation of digital assets in the country and oversee the integration of blockchain technologies in the fintech and other sectors.
In May, President Trump-backed Web3 platform, World Liberty Financial (WLF) stepped into a partnership with the PCC to collaborate on efforts around stablecoins, blockchain, DeFi, and real world assets.
The country has also tapped into El Salvador’s Bitcoin strategy as it unveiled plans to put in place a strategic BTC reserve and allocate 2,000 megawatts of energy to support crypto mining operations. For now, however, Pakistan’s crypto mining ambitions stands at a halt because the IMF has refused to approve these operations.
Crypto veterans including Binance founder Changpeng Zhao and BTC billionaire Michael Saylor are also advising Pakistan on crypto. The country is also looking to soon pilot a central bank-issued digital currency.