sandmark.com
Pakistan has lifted its ban on crypto firms being able to open bank accounts in the country, according to a circular by the State Bank of Pakistan.
The South Asian country recently changed its stance on crypto and announced a
licensing framework for firms dealing with digital assets.
Pakistan also granted statutory powers to its crypto regulator, the Pakistan Virtual Assets Regulatory Authority (PVARA), to help it oversee the sector.
Creating a friendlier regime
The pivot follows the latest trend of Asian countries opening their doors to crypto as the sector becomes more deeply entwined with traditional finance (TradFi).
Jurisdictions across the largest continent, such as Hong Kong and Japan, are trying to entice digital asset firms to set up shop by providing clear rules and a friendly banking system.
Removing the final obstacle
In March, Pakistan introduced a crypto licensing regime under the Virtual Assets Act 2026. The overarching regulation required all digital asset firms to obtain a
license from PVARA.
Despite the regulatory regime, crypto firms still faced a major obstacle while operating in the country. Banks were forbidden to open accounts for digital asset firms following the 2018 ban.
Pakistani banks can now onboard crypto firms with a PVARA license. However, the onus for due diligence, risk profiling, and reporting suspicious transactions, will fall on the banks, according to the circular dated 14 Apr.