Pakistan SBP Unlocks Banking Access for Crypto Firms Amid US-Iran Conflict
- The State Bank of Pakistan (SBP) has opened banking access to licensed crypto firms, allowing them to engage with the Pakistan Virtual Asset Regulatory Authority (PVARA).
- This reform replaces a ban on cryptocurrencies and tokens that was implemented in 2018.
- Licensed Virtual Asset Service Providers (VASPs) can now open ‘Client Money Accounts’ (CMAs) for operational transactions in Pakistani rupees.
- Banks must verify the authenticity of PVARA licenses before onboarding crypto firms and maintain strict customer due diligence.
- CMAs are limited to authorized transactions only and cannot facilitate cash deposits or withdrawals.
The SBP’s updated regulations align with the upcoming Virtual Assets Act, which aims to legalize and regulate digital assets in Pakistan as the country mediates in the US-Iran conflict.
With this new framework, licensed VASPs can access banking services after completing necessary documentation, marking a significant shift from previous restrictions. (Source)
