Islamabad gives nod to crypto firms with final registration call in September

Pakistan’s financial regulator has quietly opened a formal digital asset licensing portal, signaling the country’s first structured move toward bringing cryptocurrency firms under official oversight. The Securities and Exchange Commission of Pakistan (SECP) is now accepting applications from exchanges, custodians, and wallet providers, with a hard cutoff for existing operators set for September 5. Companies that miss that date will face the risk of enforcement actions, including potential shutdowns.

A reckoning for unregistered players

The new portal requires applicants to submit detailed business plans, anti-money laundering protocols, and proof of reserve audits. Industry insiders say the move follows years of behind-the-scenes wrangling between regulators, banks, and local crypto pioneers. “This is the end of the Wild West phase for crypto in Pakistan,” said one compliance officer at a Karachi-based trading firm who spoke on condition of anonymity. “Those who were hoping to delay or ignore registration will now have to decide: join the system or exit.”

The SECP has outlined specific licensing tiers differentiated by business scope:

• Class A – Full-service exchanges with trading, custody, and fiat on-ramps
• Class B – Custody-only services for institutional clients
• Class C – Wallet providers and payment facilitators

Each class carries distinct capital requirements and reporting obligations. The regulator has promised to publish a public register of approved firms after the deadline passes.

The move places Pakistan in a small but growing cohort of South Asian nations that have attempted to regulate rather than ban digital assets. India, for example, has taken a tax-and-track approach, while Bangladesh retains a blanket prohibition. Pakistan’s licensing portal could provide a blueprint for other emerging markets exploring how to balance innovation with consumer protection.

Local traders remain cautious. “A license doesn’t automatically fix liquidity or banking access,” noted one Lahore-based DeFi developer. “But it’s a start.” The coming weeks will test how many firms are willing to submit to the SECP’s rules — and how strictly the regulator enforces its September ultimatum for those that do not.