VASP License Pakistan: What You Need to Know About Crypto Regulation in Pakistan

When we talk about a VASP license, a regulatory requirement for entities that handle or transfer cryptocurrency on behalf of others. Also known as Virtual Asset Service Provider registration, it’s the legal gateway for crypto exchanges, wallet providers, and remittance services to operate in countries that demand oversight. In Pakistan, this isn’t just a technical formality—it’s the difference between running a legal business and risking fines, account freezes, or worse.

The State Bank of Pakistan has never officially legalized crypto trading, but that doesn’t mean it’s banned. Instead, the country walks a tightrope: individuals can still buy and sell Bitcoin through P2P platforms, but any business handling crypto must now seek formal approval. That’s where the VASP license comes in. It’s not just about registering your company—it’s about proving you have proper KYC, AML controls, cold storage, and real-time transaction monitoring. Without it, you’re operating in the gray zone. And with global regulators like FATF pushing for stricter rules, Pakistan is under pressure to bring its crypto sector into the open. This is why some local exchanges are quietly applying for licenses, while others are moving operations offshore.

It’s not just exchanges that need to care. If you’re a Pakistani developer building a crypto wallet, a remittance startup using stablecoins, or even a freelancer receiving crypto payments through a third-party platform—you’re part of the VASP ecosystem. The rules may still be evolving, but the direction is clear: transparency is non-negotiable. The same logic that led South Korea and Japan to require real-name banking and security certifications is now influencing Pakistan’s approach. You can’t ignore compliance if you want to scale.

What you’ll find in the posts below are real examples of how crypto regulation plays out across different countries—some strict, some loose, some outright banned. You’ll see how Japan’s FSA enforces cold storage rules, how Algeria’s ban led to underground trading, and how South Korea’s FSC now requires VASP registration as standard. These aren’t just foreign stories—they’re warning signs and blueprints. If you’re thinking about launching a crypto service in Pakistan, or even just holding crypto safely, you need to understand what’s coming. The next few years will decide whether Pakistan becomes a crypto hub or just another market where users are left to fend for themselves.