The policy shift aims to support regulated digital asset activity while maintaining oversight and financial system stability through controlled banking access.
Pakistan has lifted its eight-year ban on crypto-related banking activity by allowing financial institutions to work with licensed virtual asset providers.
The State Bank of Pakistan (SBP) issued a circular on 14 April authorising regulated banks to open accounts for entities registered under the Pakistan Virtual Assets Regulatory Authority (PVARA), following the passage of the Virtual Assets Act 2026.
The new framework permits banks to provide access to the sector but bars them from using their own capital or customer deposits to trade,…
