Pakistan's virtual asset regulator announced on Friday that the country has issued preliminary approvals to Binance, one of the world's largest cryptocurrency exchanges, and digital asset platform HTX, allowing them to complete registration with regulators, establish local subsidiaries, and prepare full licensing applications.

The move comes as global cryptocurrency regulations tighten, with jurisdictions such as the UAE, Japan, and parts of the EU refining formal licensing frameworks for crypto exchanges.

The Pakistan Virtual Asset Regulatory Authority (PVARA) stated that it has issued No-Objection Certificates (NOCs) to the platforms after reviewing their governance structures, compliance systems, and risk management measures.

Regulators emphasized that such preliminary approvals "do not equate to full operational licenses" but enable Binance and HTX to connect to anti-money laundering systems, establish regulated local entities, and prepare for full licensing once relevant regulations are finalized.

PVARA Chairman Bilal Bin Saqib noted that the issuance of NOCs marks "the beginning of a new chapter," adding that only well-governed and compliant platforms will qualify for full licenses under a phased process aligned with global anti-money laundering and counter-terrorism financing standards.

Pakistan’s Finance Minister Muhammad Aurangzeb stated in a release: "The implementation of this structured NOC framework demonstrates Pakistan’s commitment to responsible innovation and financial discipline."

Earlier this week, Bilal Bin Saqib revealed at the 2025 Binance Blockchain Week in Dubai that Pakistan ranks as the world’s third-largest cryptocurrency market by retail trading activity.

The development follows Pakistan’s rapid digital finance reforms in recent months, including the establishment of the Pakistan Crypto Committee and PVARA, alongside drafting formal licensing regulations.

The country also plans to pilot a central bank digital currency in 2025 and advance the Virtual Assets Act.

Additionally, Pakistan has initiated discussions with U.S.-based World Liberty Financial regarding digital asset infrastructure.

Meanwhile, the government is evaluating investment proposals from mining and AI data center operators seeking to utilize surplus electricity for related projects.