Pakistan’s central bank has authorized banks to open accounts for licensed virtual asset service providers (VASPs) and their customers, ending an eight-year prohibition on dealing in virtual currencies.
In a circular dated April 14, the State Bank of Pakistan (SBP) said regulated banks may open accounts for entities licensed by the Pakistan Virtual Assets Regulatory Authority (PVARA), the statutory body that licenses and oversees virtual asset activities.
The move follows the March passage of the Virtual Assets Act 2026 and signals a shift toward a formal regulatory framework for digital assets after the 2018 ban. Authorities have also engaged with major exchanges, including Binance and HTX, in December 2025 as part of efforts to attract regulated trading platforms. Pakistan has been exploring blockchain-based financial infrastructure as well, holding talks with affiliates of World Liberty Financial about using stablecoins for cross-border payments.
Banking access opens under strict regulatory framework
Under the SBP’s new guidance, banks may provide banking services to licensed VASPs but must not invest in, trade, or hold virtual assets using their own funds or customer deposits. The circular stresses that banks’ role is limited to offering banking services and that any VASP relationship does not relieve them of existing central bank obligations, including foreign exchange rules.
Banks are required to open separate transactional accounts denominated in Pakistan rupees—Client Money Accounts (CMAs)—for settlement of authorized transactions by licensed VASPs. CMAs must be strictly segregated from other VASP accounts, and commingling of VASP funds with client assets is prohibited.
In addition to existing customer due diligence under SBP’s anti-money laundering (AML) and countering financing of terrorism (CFT) rules, banks must perform full due diligence on each VASP, update customer risk-profiling models to capture VASP-related risks, and assign risk ratings to VASPs. Banks are instructed to monitor VASP relationships continuously and report any suspicious transactions to Pakistan’s Financial Monitoring Unit.
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