Pakistan Grants HTX Nod for Crypto Licensing, Boosting Market Credibility

Pakistan's Crypto Regulatory Shift: HTX, Binance Get Greenlight

Pakistan is taking a major step in regulating its fast-growing cryptocurrency sector as HTX, one of the world's largest digital asset exchanges, secures a No Objection Certificate (NoC) from the Pakistan Virtual Assets Regulation Authority (PVARA). The approval allows HTX to begin the licensing process for operating in the country, signaling a shift toward a more structured and compliant digital asset ecosystem. HTX's move follows a similar clearance granted to Binance, another major global exchange according to reports.

The NoC marks the first formal step in a phased licensing framework introduced by PVARA to ensure exchanges meet anti-money laundering (AML) and counter-terror financing (CTF) standards. HTX will now register with Pakistan's Financial Monitoring Unit (FMU) and engage in the process of becoming a fully licensed Virtual Asset Service Provider (VASP). This development aligns with global regulatory trends where jurisdictions like the UAE and Japan are also tightening crypto rules according to analysis.

Finance Minister Muhammad Aurangzeb praised the initiative as a sign of responsible innovation, emphasizing that only well-governed platforms will progress toward full licensing. The approval of HTX and Binance reflects Pakistan's ambition to attract global crypto players while maintaining financial stability and consumer protection. The government has also established the Pakistan Crypto Council to guide regulatory strategies and international collaboration according to sources.

A Growing Market and Strategic Positioning

Pakistan ranks as the world's third-largest market for retail crypto activity, according to PVARA Chairman Bilal bin Saqib. The country's young, tech-savvy population has driven high adoption rates, making it an attractive market for global exchanges. HTX's entry aligns with its global expansion strategy, which includes a focus on compliance, transparency, and ecosystem development. The platform has already demonstrated resilience in 2025, attracting $583.7 million in net inflows over the past 30 days.

The regulatory framework is part of a broader digital finance overhaul in Pakistan, which includes plans for a central bank digital currency (CBDC) pilot and a Virtual Assets Act in 2025. The government is also exploring digital asset infrastructure partnerships, including discussions with U.S.-based firm World Liberty Financial. These developments suggest that Pakistan is accelerating its digital transformation to compete with more mature markets.

What This Means for Investors

For investors, the move signals a shift toward greater legitimacy in Pakistan's crypto market. By aligning with global AML and CFT standards, PVARA is addressing risks such as illicit finance and market instability. HTX and Binance are now positioned to offer secure services to local users, including custody, derivatives, and exchange platforms, which could further drive adoption. The structured NOC process ensures that only compliant platforms enter the market, reducing the risk of unregulated activity.

The approval also highlights the potential for Pakistan to become a hub for digital asset innovation in the Global South. PVARA Chair Saqib emphasized that Bitcoin and blockchain should be viewed as infrastructure rather than speculative assets. This perspective could attract more institutional and retail capital to the country, particularly as global crypto regulations continue to evolve.

Risks to the Outlook

Despite the progress, challenges remain. The licensing framework is still under development, and full operational licenses are not yet available. PVARA will continue to monitor platforms during the application process, ensuring compliance with evolving standards. Additionally, the government must balance innovation with the need for financial oversight to prevent market distortions according to experts.

For now, the approval of HTX and Binance marks a pivotal moment in Pakistan's crypto journey. As the country moves toward formal licensing, it sets the stage for a regulated, transparent, and secure digital asset ecosystem that could attract global investment and foster economic growth according to analysts.