When a crypto business operates in Pakistan, it must comply with the VASP license, a regulatory requirement for Virtual Asset Service Providers under Pakistan’s anti-money laundering laws. Also known as crypto exchange licensing, it’s no longer optional—any platform handling crypto transfers, trading, or custody needs approval from the State Bank of Pakistan. This isn’t just paperwork. It’s a legal gate that separates legitimate platforms from risky, unregulated ones.
The State Bank of Pakistan, the country’s central financial authority responsible for enforcing crypto rules started cracking down on unlicensed services in 2023. Since then, exchanges without a VASP license have been blocked from banking services. That means if a platform can’t prove it’s licensed, Pakistani banks won’t process deposits or withdrawals for it. This directly affects platforms like BitFex or BTCsquare—both of which you’ll find flagged in our posts for lacking transparency and regulatory backing.
What does this mean for you? If you’re using a crypto service in Pakistan, your safety depends on whether it has a VASP license. Unlicensed platforms often have no customer support, no audit trails, and no recourse if funds disappear. The crypto regulation Pakistan, the evolving legal framework that defines how digital assets are treated under national law is still developing, but the direction is clear: compliance is mandatory. Even if you’re just holding or trading crypto, you’re part of this system. The same rules that apply to exchanges also apply to your wallet provider, P2P platform, or staking service.
Look at the posts below—they’re not random. Each one ties into this reality. You’ll find reviews of exchanges that failed to meet basic standards, warnings about platforms with zero regulatory oversight, and examples of how countries like Vietnam and Cyprus enforce similar rules. The pattern is consistent: without proper licensing, crypto services are risky. In Pakistan, that risk isn’t just financial—it’s legal. The VASP compliance, the ongoing process of meeting regulatory requirements for crypto businesses isn’t about bureaucracy. It’s about protection. And if you’re serious about using crypto in Pakistan, you need to know who’s licensed and who’s not.
Below, you’ll see real examples of platforms that slipped through the cracks—and why they’re dangerous. You’ll also find insights on how other countries handle this, what to watch for, and how to avoid getting caught in a regulatory trap. This isn’t theory. It’s what’s happening right now. And if you’re trading, investing, or even just holding crypto in Pakistan, you need to be ahead of it.
Pakistan launched its first crypto exchange licensing system in July 2025 under PVARA. Only globally licensed exchanges can apply. The process takes at least three months and requires strict AML/KYC compliance. Banks still can't support crypto, creating a legal grey area.