Pakistan Lays Groundwork for Regulated Crypto Industry

The State Bank of Pakistan has removed its crypto banking ban, paving the way for licensed firms to access traditional banking services. This move marks a significant shift towards regulating digital assets in the country.

The new framework, introduced through BPRD Circular Letter No. 10, requires banks to adhere to strict requirements before onboarding Virtual Asset Service Providers (VASPs). Banks must confirm each company's PVARA license and maintain separate client accounts in Pakistani rupees, without interest.

The system aims to maintain the separation of traditional banking and crypto risks while allowing licensed firms to access finances easily. The new framework also introduces strong safeguards for crypto operations, including anti-money laundering laws and rules against fund mixing.