Pakistan Reopens Banking Access to Licensed Crypto Firms
- Pakistan’s State Bank allows regulated banks to offer services to Virtual Asset Service Providers (VASPs) registered with PVARA, under strict conditions.
- Client crypto funds must be held in segregated accounts, distinct from standard deposits, and banks cannot trade or invest in virtual assets themselves.
- The rescission of the previous ban aligns Pakistan with the UAE’s approach, allowing only licensed firms under active supervision to access banking services.
- Binance signed a Letter of Intent with Fauji Foundation for blockchain collaboration, focusing on compliant market structures and payment infrastructure.
- Pakistan received $38.3 billion in workers’ remittances in FY25, with stablecoin settlements potentially reducing transfer costs significantly.
Stablecoin settlements through licensed VASPs could lower remittance costs below current rates of up to seven percent, enhancing financial efficiency for millions of Pakistani workers abroad.
The new framework aims to formalize Pakistan’s vast informal crypto market while providing safer channels for freelancers and small traders through compliant bank-to-VASP pathways.Source)
