- Binance and HTX can integrate into Pakistan’s anti-money laundering system as they received NOCs from the PVARA.
- The NOCs allow companies to prepare for a phased licensing approach.
- The companies can register with the Financial Monitoring Unit’s goAML system and incorporate locally regulated units.
Pakistan’s Virtual Assets Regulatory Authority (PVARA) has granted No Objection Certificates (NOCs) to prominent crypto exchanges Binance and HTX. This development marks a significant milestone in the country’s blockchain industry as well as the exchanges’ vision of global expansion.
Significantly, this move is part of the Pakistani government’s broader efforts to create a conducive environment for innovation and investment, while ensuring that the industry operates within a robust regulatory framework. The NOCs will establish a formal presence in Pakistan and will facilitate the development of a range of digital asset services that are compliant with international standards.
Pakistan’s Crypto Regulatory Green Light: PVARA Grants NOC to Binance and HTX
According to a recent Reuters report, Pakistan has granted preliminary approval to Binance and HTX, two leading cryptocurrency exchanges, allowing them to start the licensing process. The PVARA issued NOCs to both platforms, enabling them to register with regulators, set up local subsidiaries, and prepare for full exchange license applications.
For Binance Founder Changpeng Zhao, also known as CZ, the agreement between the exchange and Pakistan is a “great signal for the global blockchain industry and for Pakistan.” He added that the development marks the beginning of a broader step toward achieving the tokenization goal.
As per reports, the PVARA has granted preliminary approvals to the exchanges after assessing their governance and compliance frameworks. The PVARA Chair, Bilal bin Saqib, asserts that the move marks the beginning of the country’s phased licensing process, where compliance strength will be the determining factor for exchanges to move forward.
How is this NOC Important?
However, these NOCs to Binance and HTX do not constitute a complete operating license, but rather enable these platforms to integrate into Pakistan’s anti-money laundering system and get ready for a phased licensing approach. With this development, both companies can now register with the Financial Monitoring Unit’s goAML system and incorporate locally regulated units.
They can also prepare and submit full license applications once regulations are finalized. In order to establish their fully licensed subsidiaries in Pakistan, they need to adhere to PVARA’s regulatory framework, emphasizing transparency, governance, and risk management.
Pakistan Embraces Blockchain: Unveiling Tokenization Push
Interestingly, the green light to the major cryptocurrency exchanges Binance and HTX aligns with Pakistan’s expansion of its blockchain space. The country is exploring a potential collaboration to tokenize and distribute its real-world assets using blockchain technology, including sovereign bonds, treasury bills, and commodity reserves like oil, gas, metals, and other government-owned raw materials.
This move also aligns with a global trend, as countries like the United Arab Emirates, Japan, and parts of the European Union implement clearer regulations for crypto exchanges and explore blockchain applications.
Additionally, the initiative could potentially involve assets worth up to $2 billion, pending approvals, with the goal of enhancing liquidity, transparency, and access to international markets. Finance Minister Muhammed Aurangzeb described the MoU as a signal of Pakistan’s commitment to reform and a long-term partnership.
The country is rapidly advancing its digital finance reforms, having established the PVARA while drafting a formal licensing regime. Reportedly, Pakistan ranks third in the world in crypto market retail activity. This overhaul aims to create structured, regulated norms for the country’s thriving
