licensing – Earlybirds Invest

Pakistan is inviting global cryptocurrency businesses to begin the process of securing licenses to operate in the country.

The Pakistan Virtual Asset Regulatory Authority (PVARA) issued a formal call for international exchanges and digital asset firms to submit their interest in entering the local market.

Applicants must already hold licenses from recognized regulatory authorities in other countries. These include the US Securities and Exchange Commission (SEC), the UK’s Financial Conduct Authority (FCA), the European Union’s VASP regime, the United Arab Emirates’ Virtual Assets Regulatory Authority, and Singapore’s Monetary Authority.

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PVARA has requested that companies provide detailed information about their background and operations. This includes their existing licenses, the countries in which they operate, the services they offer, their technology infrastructure, and the measures they take to ensure security.

They must also explain how they plan to tailor their business to meet Pakistan’s market and regulatory requirements.

The new licensing system aims to help reduce unlawful financial activities and to support the growth of financial technology and innovation. It may also allow for testing of products that comply with Islamic finance principles through regulatory pilot programs.

The authority responsible for overseeing this initiative, PVARA, was established under the Virtual Assets Ordinance 2025. Its job is to approve, monitor, and manage crypto-related service providers while following international regulatory standards.

Meanwhile, Alexander Lukashenko, the President of Belarus, recently told the country’s banking leaders to expand their use of cryptocurrencies and modern financial tools. Why? Read the full story.

Policy exceeds legal requirements

The report noted that Google’s requirements extend beyond current legal obligations for non-custodial wallets.

FinCEN’s 2019 guidance on Convertible Virtual Currencies distinguishes between “hosted” custodial and “unhosted” non-custodial wallets, explicitly stating that non-custodial wallets do not qualify as money transmitters under existing regulations.

The compliance programs required of MSBs represent the highest cost burden for financial institutions and would effectively exclude most non-custodial wallet developers from the Play Store.

The policy forces AML and KYC requirements on all non-custodial wallets available through standard Google devices.

Industry criticism mounts

Consensys lawyer Bill Hughes highlighted the policy inconsistencies on August 1, noting that Google announced the updated policy on July 10 without clearly defining “software wallet” terminology.

Hughes observed that registering as an MSB is “something FinCEN has specifically and clearly not required” for non-custodial wallets.

He added:

“They don’t define the term and do not acknowledge that registering as an MSB is something FinCEN has specifically and clearly not required.”

He noted Google’s broader statement that cryptocurrency activities “should be conducted through certified services in regulated jurisdictions,” despite certification not being legally required.

Hughes characterized the situation as “a bit of a mess” and warned that “the final boss for crypto is now more likely to be the Big Tech platforms that still dictate the major crypto app distribution channels.”

Justin Slaughter, vice president of regulatory affairs at Paradigm, criticized the policy as particularly problematic given Google’s ongoing antitrust litigation.

He said:

“Surprising move here by Google, especially amid their antitrust litigation, to suddenly place draconian restrictions on persons making non-custodial wallets available on the App Store.”

Slaughter referenced pending congressional legislation, noting that “pure coding should not require a federal license” as outlined in draft bills addressing cryptocurrency regulation.

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