Pakistan's State Bank (SBP) has lifted an eight-year ban, allowing banks to open accounts for licensed virtual asset service providers (VASPs) and their clients. This directive, issued April 14, permits regulated entities to serve businesses licensed by the Pakistan Virtual Assets Regulatory Authority (PVARA).
The move follows the passage of the Virtual Assets Act 2026 and signals a more structured regulatory approach to digital assets. Pakistan has been engaging with major exchanges and exploring blockchain infrastructure, including stablecoin use for cross-border payments.
Under the new framework, banks will provide services to licensed firms but cannot invest or trade virtual assets with their own funds or customer deposits. Strict guidelines are in place for account segregation, due diligence, and ongoing monitoring of VASP relationships to comply with anti-money laundering and counter-financing of terrorism rules.
