Pakistan’s central bank has lifted its 2018 prohibition, allowing commercial banks to provide accounts to licensed Virtual Asset Service Providers (VASPs). This policy reversal permits regulated crypto businesses to access operational banking services under strict anti-money laundering and know-your-customer rules. The move aligns Pakistan with global digital asset trends and could facilitate fiat on-ramps, compliant corporate services, and fintech investment. However, full licensing is incomplete, and uncertainties around taxation and cybersecurity may slow implementation.
The State Bank of Pakistan has officially permitted commercial banks to open accounts for licensed Virtual Asset Service Providers. This action formally reverses the 2018 directive that banned banks from assisting cryptocurrency transactions.
Licensed VASPs can now open operational accounts for staff salaries, business transactions, and treasury purposes. These accounts are subject to standard anti-money laundering and know-your-customer measures.
Banking access provides a regulated path for blockchain businesses to connect with Pakistan’s traditional financial system. It may simplify fiat on-ramping for users and enable compliant corporate banking for exchanges and wallet providers.
The policy could attract regional fintech investment into blockchain infrastructure, remittance products, and tokenization schemes. “Pakistan integrates licensed VASPs into formal banking,” as mentioned in a social media post discussing the development.
Only entities licensed by the Pakistan Virtual Assets Regulatory Authority qualify for the new banking access. A comprehensive licensing framework for all types of crypto businesses is not yet fully operational.
Banks must perform rigorous due diligence checks according to the central bank’s guidelines. This process, along with unclear tax and cybersecurity regulations, may slow the onboarding of crypto businesses.
