VASP License Pakistan: What It Means for Crypto Users and Exchanges

When we talk about a VASP license, a regulatory requirement for entities that handle cryptocurrency transfers, custody, or exchange services. Also known as Virtual Asset Service Provider registration, it’s the legal gatekeepers use to track who’s moving crypto in and out of a country. In Pakistan, this isn’t just paperwork—it’s the difference between operating legally and risking criminal charges. Since 2021, the State Bank of Pakistan has been pushing for strict oversight of crypto businesses, and by 2025, any platform offering exchange, wallet, or trading services to Pakistani users must have a VASP license to avoid being shut down or blocked.

Without a VASP license, crypto exchanges can’t legally connect to Pakistani banks. That means users can’t deposit rupees, withdraw funds, or even use local payment methods like JazzCash or EasyPaisa. This directly impacts traders, remittance users, and small businesses trying to use crypto as a financial tool. The lack of licensing has also opened the door to scams—fake exchanges like GoodExchange or XeggeX have targeted Pakistani users, promising fast returns while stealing funds. Meanwhile, countries like Nigeria and Qatar have shown that clear VASP rules can coexist with innovation, giving users protection without killing access.

Regulators in Pakistan aren’t trying to ban crypto—they’re trying to control it. A licensed VASP must follow KYC rules, report suspicious activity, and keep records for at least five years. That’s why platforms like BlueBit or BloFin, which operate globally, avoid offering services directly to Pakistan unless they’ve gone through the full registration process. For everyday users, this means only a handful of exchanges will ever be truly safe to use. And if you’re running a crypto business? You need legal advice before you even launch your website.

What you’ll find in the posts below are real cases of what happens when crypto meets regulation—or ignores it. From crackdowns in Afghanistan to banking bans in Qatar, these stories show how VASP rules shape who gets to trade, who gets locked out, and who loses everything. This isn’t theoretical. It’s happening right now, and if you’re in Pakistan, you need to know where you stand.