Eight years after banning all banks from providing crypto services, Pakistan has officially greenlit the practice—a move poised to quickly facilitate the adoption of digital assets in the world’s fifth-most populous country.
Per the State Bank of Pakistan’s new rules, banks are now permitted to provide banking services to registered crypto companies dubbed Virtual Asset Service Providers, or VASPs. VASP funds must be kept isolated—and not commingled—from the banks’ standard client accounts.
Banks will be responsible for monitoring their new crypto clients and ensuring they do not run afoul of Pakistani regulations related to money laundering prevention and risk protection.
The banks themselves will not, however, be allowed to trade, invest, or hold crypto, with either their own funds or customer deposits.
