Pakistan’s regulators have taken a decisive step that few emerging economies have dared. Recently, the country has invited global crypto exchanges and service providers to apply for operating licenses.

In hindsight, it might seem like the Pakistan Virtual Assets Regulatory Authority (PVARA) is trying to create demand and expand the digital assets market in the country. But it’s actually trying to bring an existing market of tens of millions of users and billions of dollars in annual transactions into a legal and supervised framework.

This is a critical move because crypto adoption has been soaring to record highs in Pakistan. The country now sits third on Chainalysis’ 2025 Global Crypto Adoption Index, trailing only India and the United States. According to industry estimates, more than 40 million Pakistanis are already active in crypto markets, a scale that rivals participation in traditional finance.

So, formalizing this massive and increasing digital activity without losing dynamism is necessary, but extremely challenging.

Why crypto is impossible to ignore in Pakistan

Several structural factors explain why crypto is a national conversation. First is demographics. Pakistan has one of the youngest populations globally, with more than 60% under the age of 30. Smartphone penetration is rising quickly, and digital platforms have become the primary entry point for financial services.

Second, remittances are the backbone of the economy. Overseas workers send home over $30 billion each year, but traditional transfer channels remain expensive and slow. Crypto offers near-instant settlement and lower fees. So, it’s a natural alternative.

Also, inflation and currency weakness have shifted public perception of digital assets.

© Profit