Pakistan has, for the first time, set up a regulatory framework for cryptocurrencies and moved to attract foreign companies.

Bitcoin Magazine, a blockchain outlet, reported on Aug. 21 that the Pakistani government has begun licensing procedures under the Virtual Assets Act to bring related businesses into the formal system, moving away from a long-standing ban on cryptocurrencies.

The key to the overhaul is that it has, for the first time, created a comprehensive legal framework to manage and supervise cryptocurrencies and related operators. Bilal Bin Saqib (빌랄 빈 사킵), the prime minister's special assistant for blockchain and cryptocurrency, publicly called on foreign companies via X, formerly Twitter, to enter the local market. He said "Pakistan's doors are open" and stressed that companies should obtain licences locally and link to banking services to operate under what he called "enforceable rules."

Pakistan has long effectively banned cryptocurrencies. Saqib said, "For about 10 years, Pakistan's crypto policy has swung between full permission and full prohibition," adding, "History shows that technology does not wait for government permission." He also stressed that Pakistan has created an institutional foundation for consumer protection by establishing clear rules, a dedicated regulator and a licensing system.

Legal procedures are already well advanced. The Virtual Assets Act passed the Senate earlier this year and was then signed by President Asif Ali Zardari, confirming it as law.

The move is an extension of Pakistan's recent pro-cryptocurrency policies. At the "Bitcoin 2025" event held in 2025, Pakistan unveiled a plan to create a national strategic bitcoin reserve. It also announced a plan to allocate 2,000 megawatts of government-held surplus power to bitcoin mining and artificial intelligence (AI) data centres. At the time, the government set out policy goals of generating revenue, expanding jobs and attracting foreign investment.

Links with the U.S. cryptocurrency industry have also expanded. Officials from WLFI (World Liberty Financial), a crypto project involving the family of U.S. President Donald Trump, visited Islamabad after Trump's return to power and met with Pakistan's prime minister. Coupled with Pakistan's diplomatic steps that have played a mediating role between the United States and Iran, the scope of cooperation between the two countries appears to be widening into crypto.

Pakistan is not stopping at shifting crypto policy from prohibition to permission. It is also overhauling the system to build licensing, financial access and supervision together. It remains to be seen whether foreign crypto firms will actually enter through the new licensing system and how quickly mainstreaming, including the bitcoin reserve and mining power policies, will proceed.

8 years of prohibition end today. Chairman PVARA @BilalBinSaqib announces the notification of the Licensing Regulations and the opening of the licensing portal, and sets out what licensing requires of providers and what it guarantees consumers. Get licensed. Get compliant. Come… pic.twitter.com/STVPsoX1so