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Pakistan Moves Toward Regulated Crypto Framework for Licensed VASPs

According to the State Bank of Pakistan, banks may now provide account access to PVARA-licensed virtual asset service providers, ending a ban in place since April 2018 while keeping direct bank crypto activity prohibited.

Fact Check
The Reuters report, 'Pakistan cenbank opens formal banking to licensed virtual asset service providers | Reuters,' directly supports the statement's main elements: Pakistan's central bank reversed its 2018 restriction, banks may open accounts for licensed VASPs, those accounts are segregated non-remunerative rupee accounts, and banks must perform license verification, due diligence, risk analysis, and suspicious transaction reporting. The PANews article, '巴基斯坦央行允许银行为持牌虚拟资产服务商开户，推翻2018年禁令 | PANews,' independently restates the same facts and cites Reuters. I could not validate the user-provided X posts or BlockBeats page because fetching failed, but the validated Reuters article is sufficient to support the claim.
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Summary

Pakistan has formally lifted its banking ban on licensed virtual asset service providers, allowing banks to open accounts for firms authorized by PVARA under strict regulatory conditions. According to the State Bank of Pakistan, the change ends a restriction that had been in place since April 2018, but banks are still barred from using their own funds or customer deposits for crypto-related activities. The move shifts Pakistan further toward a regulated access model in which only licensed VASPs can receive banking services and compliance checks remain mandatory.

Terms & Concepts
  • VASPs: Virtual asset service providers are licensed firms that offer services linked to digital assets, such as exchange, transfer, or custody, within a regulatory framework.
  • PVARA: The Pakistani licensing authority referenced in the report whose authorization is required before a virtual asset service provider can obtain banking access.