Pakistan lets banks open rupee accounts for licensed crypto firms

On April 14 the State Bank of Pakistan issued a circular allowing banks to open Pakistan-rupee client accounts for virtual asset service providers licensed by the Pakistan Virtual Assets Regulatory Authority and for their customers. The circular replaces restrictions that have limited banking services for crypto firms since a 2018 ban.

The circular follows Parliament’s passage of the Virtual Assets Act 2026 in March, which established PVARA as the statutory regulator for virtual asset activity. Under the guidance, banks may open separate transactional accounts, described as Client Money Accounts (CMAs) and denominated in Pakistani rupees, to settle authorized transactions of licensed VASPs and their clients.

The SBP limited banks’ involvement to traditional banking services. Regulated entities are barred from investing in, trading or holding virtual assets using their own funds or customer deposits. The circular makes clear that arrangements with VASPs must comply with all central bank regulations, including foreign exchange rules, and do not remove banks’ existing regulatory responsibilities.

The guidance sets custody and segregation requirements. CMAs must be kept separate from other VASP accounts, and banks are prohibited from commingling VASP funds with client assets. Banks must monitor VASP-related accounts on an ongoing basis and report suspicious transactions to Pakistan’s Financial Monitoring Unit.

Anti-money laundering and counter‑financing of terrorism rules in the circular extend existing due diligence obligations to VASPs. Banks must conduct full due diligence on each licensed VASP, update customer risk‑profiling models to capture VASP-related risks and assign risk ratings to those relationships. Enhanced monitoring, record‑keeping and reporting requirements apply.

The SBP instructed banks to obtain and maintain compliance documentation for each VASP, incorporate VASP risks into internal controls and audit programs, and establish clear contractual and operational arrangements with licensed firms.

Officials held talks with international exchanges in December 2025 and engaged with affiliates of World Liberty Financial on blockchain-based payment infrastructure, including potential stablecoin use in cross‑border payments. The April circular is the first major SBP guidance enabling routine banking services for licensed VASPs under defined safeguards.