Pakistan allows banks to serve licensed crypto firms after years-long ban

Pakistan’s central bank has allowed banks to open accounts for licensed virtual asset service providers, ending years of restrictions and marking a shift toward a regulated framework.

Pakistan’s central bank has allowed banks to open accounts for licensed virtual asset service providers (VASPs) and their customers, replacing an eight-year-old prohibition on dealing in virtual currencies.

In a circular dated April 14, the State Bank of Pakistan (SBP) said regulated entities may open bank accounts for entities licensed by the Pakistan Virtual Assets Regulatory Authority (PVARA), the statutory body responsible for licensing, regulation and oversight of virtual asset activities in the country.

The move follows Pakistan’s passage of the Virtual Assets Act 2026 in March and marks a shift toward a more formal regulatory framework for digital assets after years of restrictions following an outright ban in 2018. 

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