Pakistan issues NOC to Binance and HTX under new VARF

The Pakistan Virtual Assets Regulatory Authority (PVARA) has issued No-Objection Certificates (NOCs) to Binance and HTX.

According to officials, this development is part of the ongoing efforts to establish a structured and comprehensive regulatory framework for Virtual Asset Service Providers (VASPs) in Pakistan.

The NOCs were issued following joint consultations with relevant government departments and completion of formal review procedures.

With the issuance of these NOCs, Binance and HTX are now permitted to initiate preliminary preparatory and consultative activities in Pakistan under targeted regulatory oversight. However, the NOC does not constitute a full operating license.

Under the NOC, both entities may begin registration as reporting entities on the Financial Monitoring Unit’s goAML system, coordinate with the Securities and Exchange Commission of Pakistan (SECP), and initiate the process of registering their regulated local subsidiaries in the country.

Once licensing regulations are formally issued, the companies will be able to prepare and submit applications for full VASP licenses.

After completing goAML registration, they will be allowed to provide AML-compliant services in accordance with PVARA regulations.

This development reflects PVARA’s phased and risk-based approach to regulating the virtual asset sector, aligned with international regulatory practices.

The authority’s objective is to encourage responsible innovation while ensuring market transparency, consumer protection, and financial stability.

The structured NOC framework demonstrates Pakistan’s commitment to financial discipline and responsible digital innovation.

Federal Minister for Finance, Senator Muhammad Aurangzeb, stated that as part of Pakistan’s digital transformation, PVARA is becoming the world’s first AI-powered Virtual Assets Regulatory Authority.

He noted that the authority has already introduced an AI-based application evaluation system, an in-house AI recruitment portal, and an AI-assisted regulatory documents review tool.

He said that these tools have enhanced supervisory capabilities and brought Pakistan closer to global regulatory standards.

PVARA will continue consulting local and international stakeholders as it advances to the next stages of the regulatory framework, with further guidelines on licensing standards, compliance requirements, and supervisory expectations to be issued in due course.

PVARA Chairman Bilal Bin Saqib said that today marks the beginning of a new era for Pakistan’s digital asset ecosystem.

The issuance of NOCs is the first step toward a fully licensed and regulated environment, laying the foundation for consumer protection, financial transparency, and responsible innovation.

He added that through a phased strategy aligned with international principles, Pakistan aims to ensure that only globally compliant and well-governed platforms progress to the next stages of licensing.

The chairman noted that the framework strengthens Pakistan’s alignment with FATF standards and reinforces the country’s commitment to robust AML and CFT measures.