Pakistan Lifts 8-Year Ban on Crypto Firms, Allows Licensed VASPs to Access Banking Services

The Pakistani government has taken a significant step towards regulating the cryptocurrency sector by permitting licensed VASPs to open bank accounts.

This decision marks a shift away from the country's previous restrictive stance on cryptocurrencies, which dates back to 2018.

Under the new guidelines, banks will conduct enhanced due diligence on VASP clients and must verify their licenses with government agencies.

The State Bank of Pakistan has also prohibited banks from investing customer deposits in cryptocurrencies or holding digital assets on their balance sheets.