Following years of limitations on virtual assets, Pakistan’s central bank has officially permitted banks to offer services to licensed cryptocurrency companies.
The State Bank of Pakistan (SBP) said in a circular on April 14 that regulated organisations are now able to open accounts for businesses that have been approved by the recently formed Pakistan Virtual Asset Regulatory Authority (PVARA).
A 2018 directive that essentially prohibited banks from handling cryptocurrency is replaced by this action.
The Virtual Assets Act, 2026, which established PVARA as the nation’s specialised regulator for cryptocurrency-related operations, was passed after the amendment.
The revised regulations require banks to confirm that each cryptocurrency company they work with has a current PVARA licence.
This criterion serves as the foundation for a system in which unlicensed activity stays outside of official channels and only regulated firms can access the banking system.
Only strictly regulated account structures have been permitted for cryptocurrency companies by the SBP. For transactions involving virtual asset services, banks must set up specific client money accounts that clearly distinguish between firm and customer cash.
These accounts are not allowed to offer interest and must be valued in Pakistani rupees. Additionally, money kept in them cannot be used as collateral for loans or other credit facilities, and they are prohibited from managing cash deposits or withdrawals.
Before onboarding cryptocurrency companies, banks are expected to conduct additional due diligence, which includes evaluating their client base, business strategies, and geographic exposure.
Source: X.com
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