VASP License Pakistan: What You Need to Know About Crypto Regulations in Pakistan

When we talk about a VASP license, a regulatory requirement for entities that handle cryptocurrency transfers or exchanges. Also known as Virtual Asset Service Provider registration, it's the legal gatekeepers use to track who’s moving crypto in and out of their country. In Pakistan, this isn’t just paperwork—it’s the difference between operating legally or being shut down overnight. The State Bank of Pakistan (SBP) doesn’t issue VASP licenses outright, but it does enforce strict anti-money laundering rules that apply to any business handling digital assets. If you’re running a crypto exchange, wallet service, or even a peer-to-peer trading platform in Pakistan, you’re expected to comply with these rules—even if there’s no official VASP application form yet.

That’s where things get messy. Unlike countries like Switzerland or Singapore, Pakistan hasn’t created a clear licensing framework for crypto firms. Instead, it relies on existing financial crime laws. This means companies must register with the Federal Board of Revenue (FBR) for tax purposes, and they must follow the Anti-Money Laundering Act of 2010. The Financial Action Task Force (FATF) has been pushing Pakistan to tighten these rules since 2019, and the country has responded with vague guidelines that still leave businesses guessing. So while you won’t find a "VASP license" on a government website, you’ll find plenty of crypto platforms quietly shutting down because they couldn’t prove they were following the rules. This ambiguity affects everyone—from local traders using Binance P2P to startups trying to build DeFi tools in Lahore.

What’s worse, many crypto platforms targeting Pakistani users claim to be "regulated" by pointing to offshore licenses—like those from Mauritius or Malta. But those don’t protect you in Pakistan. The SBP has repeatedly warned that any crypto activity not approved by them is risky, and users could lose funds without recourse. That’s why platforms like BEX Mauritius Block Exchange, a crypto platform with a regulatory license but zero trading activity—or fake exchanges like Deliondex, a non-existent platform that tricks users into depositing funds—can still pop up. They exploit the gray zone: no clear rules mean no one’s checking if you’re legit. But when the crackdown comes, it’s the users who get burned.

If you’re a trader in Pakistan, you’re probably already using P2P platforms or foreign exchanges. But if you’re building a business around crypto here, you need to understand that compliance isn’t optional—it’s survival. You’ll need to know how to report transactions, verify your users, and keep records that match FATF standards. There’s no shortcut. And if you think an airdrop or token launch can bypass this? Think again. Projects like LESS Network, a crypto project with no official airdrop but plenty of fake claims often target countries with weak oversight, hoping users won’t ask questions. But in Pakistan, even scams are getting harder to run without some form of financial traceability.

What follows are real cases of crypto platforms that failed, got banned, or vanished in Pakistan—along with the lessons they left behind. You’ll see how regulation, or the lack of it, shapes what’s possible here. Whether you’re trying to trade, build, or just protect your crypto, this isn’t about hype. It’s about knowing where the lines are—and who draws them.