70 firms seek licences as Pakistan enters digital asset era

ISLAMABAD: Pakistan has formally begun the licensing process for companies dealing in digital assets as the country moves towards establishing a regulated framework for the emerging digital economy.

Chairman of the Pakistan Virtual Regulatory Authority Bilal bin Saqib said that the authority has so far received 70 applications from companies seeking licences to operate in the digital asset sector.

He said licences for buying and selling digital assets would be issued to companies that meet the requirements set out under the regulatory framework.

According to Bilal bin Saqib, the regulatory framework for digital assets has been developed within six months. The framework is intended to establish clear rules for companies operating in the sector while ensuring that digital asset-related activities are brought under formal regulatory oversight.

The licensing initiative is expected to provide a structured environment for businesses involved in digital assets and create greater clarity for investors, service providers and consumers.

The authority will assess applications against the prescribed regulatory requirements before granting licences. Companies that fail to meet the required standards will not be eligible to operate under the regulated digital asset system.

Bilal bin Saqib also highlighted the potential benefits of digital remittances for overseas Pakistanis and the country’s economy.

He said Pakistanis currently pay an average cost of around 6.5% when sending remittances through existing channels. The use of digital remittance systems could potentially bring this cost down to around 1%.

A reduction in remittance costs could result in significant savings for overseas Pakistanis and increase the amount of money ultimately reaching their families in Pakistan.

According to the chairman, lowering the cost of remittances could help save around $410 million, providing an additional economic benefit to the country.

Remittances sent by overseas Pakistanis are an important source of foreign exchange for Pakistan and play a major role in supporting household incomes and the country’s external account.

The government’s move to regulate digital assets comes as financial technology and digital payment systems continue to expand globally. Authorities are seeking to develop a formal regulatory structure that can accommodate emerging technologies while maintaining oversight of financial activities.

The licensing process is expected to be an important step towards bringing digital asset businesses into a regulated environment in Pakistan. It could also encourage companies operating in the sector to comply with formal standards and provide greater transparency for users.

Officials believe that a regulated digital asset ecosystem, combined with cheaper digital remittance channels, could help improve financial efficiency and create new opportunities within Pakistan’s rapidly developing digital economy.