Pakistan lifts crypto bank ban
Social coverage reported that Pakistan’s recent policy change rescinded a prior ban on banks servicing crypto businesses, signaling renewed formal access to banking for local crypto firms. The post gained notable engagement and was discussed in the context of regional regulatory shifts. (x.com)
Pakistan’s central bank has reopened banking access for licensed crypto firms, replacing its 2018 restriction with new rules effective April 14. (sbp.org.pk) The State Bank of Pakistan said banks, microfinance banks, electronic money institutions and other regulated entities may open accounts for Virtual Asset Service Providers licensed by the Pakistan Virtual Asset Regulatory Authority, or PVARA. The order specifically replaces BPRD Circular No. 03 of 2018. (sbp.org.pk) The new framework is narrower than a blanket green light for crypto. Banks can serve licensed firms and their customers, but client money accounts must be in Pakistani rupees, must not pay interest, and cannot accept cash deposits or cash withdrawals. (sbp.org.pk) Banks also have to verify each provider’s PVARA license, keep client money separate from company funds, and apply anti-money-laundering controls, customer due diligence and suspicious-transaction reporting. The State Bank tied the change to Pakistan’s new virtual-asset law and PVARA’s supervisory role. (sbp.org.pk) PVARA says any exchange, wallet operator, token issuer, custodian or investment platform offering virtual-asset services in Pakistan must obtain approval before operating. The regulator says it is currently accepting applications for no-objection certificates, with a full licensing framework to follow. (pvara.gov.pk) The legal architecture is recent. PVARA says the Virtual Assets Act, 2025 was introduced in July 2025 as Pakistan’s first comprehensive framework for virtual assets, with rules built around anti-money-laundering and counter-terror-financing standards aligned with the Financial Action Task Force. (pvara.gov.pk) That is a reversal from the State Bank’s position a year earlier. In a May 30, 2025 clarification, the bank said its 2018 directive told regulated entities to avoid dealing in virtual assets because no legal framework existed, and said it was then working with the Finance Division and the Pakistan Crypto Council on one. (sbp.org.pk) The practical change is that a licensed crypto business in Pakistan can now seek a formal bank account instead of operating outside the banking system. The State Bank’s circular says the new permissions take effect immediately, but only for firms that meet PVARA and bank compliance checks. (sbp.org.pk)
