Woofun AI reports that Pakistan's Virtual Assets Regulatory Authority (PVARA) has activated a mandatory licensing regime, compelling digital asset firms to secure a no-objection certificate by Sept. 5 or permanently cease operations.

Compliance hinges on meeting rigorous operational and security standards, specifically safeguarding customer funds, maintaining robust cybersecurity, providing clear disclosures, and ensuring transparent business practices. Per Woofun AI, these requirements form the core of the new regulatory obligation for all market participants seeking legal status.

The Virtual Assets Act 2026 defines the legislative scope, covering 11 types of crypto-related activity including custody, exchange, broker-dealer, and derivatives services. This regulatory structure arrives after the State Bank of Pakistan lifted its ban on banking services for crypto firms in April, marking a significant shift in financial infrastructure access.

Despite this progress, structural restrictions persist within the traditional banking sector. Banks remain prohibited from investing in, trading, or holding crypto assets themselves, preserving a clear firewall between institutional banking and direct digital asset exposure.