Pakistan Reverses 2018 Crypto Banking Restrictions as New Law Opens Regulated Access for Digital Asset Firms – Regulation Bitcoin News
The post Pakistan Reverses 2018 Crypto Banking Restrictions as New Law Opens Regulated Access for Digital Asset Firms – Regulation Bitcoin News appeared on BitcoinEthereumNews.com.
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 service providers (VASPs) under defined compliance conditions. The circular builds on recent legislative developments that provide the legal basis for this shift. It explicitly recognizes the regulatory foundation, stating: “The Virtual Assets Act, 2026 has been enacted, pursuant to which, Pakistan Virtual Asset Regulatory Authority (PVARA) has been established as the statutory authority responsible for the licensing, regulation, supervision and oversight of virtual asset activities in Pakistan.” With that framework in place, the directive effectively replaces the earlier restriction and allows regulated institutions to work with licensed entities, noting: “subject to strict compliance with the conditions outlined herein, SBP Regulated Entities (REs) may open bank accounts of entities duly licensed by PVARA as Virtual Asset Service Providers (VASPs).” The policy shift marks a clear reversal from SBP BPRD Circular No. 03 of 2018, issued on April 6, 2018. In that earlier directive, the central bank stated: “Virtual currencies (VCs) like bitcoin, litecoin, pakcoin, onecoin, dascoin, pay diamond etc. or initial coin offerings ( ICO) tokens are not legal tender, issued or guaranteed by the government of Pakistan.” It also said regulated institutions “are advised to refrain from processing, using, trading, holding, transferring value,…
Filed under: News - @ April 15, 2026 4:28 pm