Key Takeaways:

• Pakistan enabled licensed crypto firms to access banking, reversing its earlier blanket restriction.
• Banks must apply strict due diligence and FMU reporting when onboarding licensed firms.
• Pakistan lifted its 2018 ban that blocked banks from processing, trading, or holding crypto assets.

SBP Circular Reverses 2018 Restriction, Opens Banking Access to VASPs

Pakistan’s latest regulatory update is changing how digital asset companies connect with the formal financial system, pointing to a more structured model of oversight and controlled participation. On April 14, the State Bank of Pakistan (SBP) issued BPRD Circular Letter No. 10 of 2026, permitting SBP-regulated entities to open accounts for licensed virtual asset…