The State Bank of Pakistan (SBP) has announced a significant policy shift by introducing new regulations for virtual asset service providers (VASPs) on April 15, 2026. This development comes as part of the implementation of the Virtual Assets Act, 2026, which aims to create a structured regulatory environment for virtual currencies in Pakistan.
Under the new framework, banks are now permitted to open and maintain accounts for VASPs licensed by the Pakistan Virtual Asset Regulatory Authority (PVARA). These accounts, known as client money accounts (CMAs), are subject to strict compliance and anti-money laundering (AML) requirements. The SBP’s circular mandates that banks ensure a clear segregation between CMAs and other VASP accounts, prohibiting the commingling of funds.
The transition from the 2018 ban on dealing with virtual currencies to this regulated framework marks a pivotal moment for the Pakistani financial sector. Banks are required to conduct thorough due diligence on VASPs, including verifying licenses with PVARA and understanding the nature of their business activities. This process includes amendments to customer risk profiling models to integrate VASP-related risks.
The SBP’s move reflects a broader trend towards embracing digital finance while ensuring robust regulatory oversight. The introduction of these regulations is expected to foster innovation in the financial sector, while also addressing concerns related to money laundering and financial security. The banking sector must now adapt to these changes as Pakistan positions itself in the evolving landscape of digital assets.
Published in SouthAsianDesk, April 16, 2026
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