The State Bank of #Pakistan has issued an official circular on April 14, authorizing regulated banks to open accounts for licensed Virtual Asset Service Providers (VASPs). This move ends a banking restriction that had been in place since 2018, removing a major operating barrier for crypto firms in the country.
However, access comes with strict conditions. Only firms holding a valid license from Pakistan's #VirtualAssets Regulatory Authority qualify. Banks can provide banking infrastructure but cannot trade, invest in, or hold virtual assets using their own funds or customer deposits. Banks are also required to maintain separate Pakistani rupee Client Money Accounts, conduct proper due diligence, update risk models, and report suspicious transactions to Pakistan's Financial Monitoring Unit.
A similar approach was seen in Hong Kong in 2023, where the licensing regime opened banking access for crypto exchanges — but in practice, onboarding moved slowly and only two exchanges received approval initially. Pakistan's case adds an extra layer by strictly limiting banks to infrastructure only, keeping them away from direct crypto exposure.
If licensed VASPs successfully secure bank accounts, Pakistan's regulated crypto market could deepen and fiat settlement could improve significantly. The key risk is that banks may apply due diligence slowly, limiting the real-world impact of this policy change in the short term.
Overall #MarketSentiment is cautiously bullish and policy-driven — a positive structural development, but execution will determine how meaningful this becomes in practice.