Pakistan has seen a major development regarding cryptocurrency. Minister of State for Blockchain and Crypto Bilal Bin Saqib stated that the State Bank of Pakistan has lifted the ban on crypto banking that had been in place for the past 8 years.
Following this decision, Pakistani banks can now open accounts for licensed crypto companies. Previously, crypto firms had no formal connection with the banking sector.
However, there is an important restriction:
Banks are not allowed to directly engage in crypto business. They cannot buy or hold cryptocurrencies using their own funds or customers’ money.
In simple terms, banks can now provide financial services to crypto companies, but they cannot trade or invest in cryptocurrencies themselves.
This policy shift comes as many countries around the world are gradually moving toward regulating cryptocurrencies instead of banning them outright.
Governments are actively improving on licensing, compliance, and monitoring frameworks to reduce risks such as money laundering and fraud while still allowing innovation in the financial sector.
In Pakistan, interest in digital assets has grown a great deal over the past few years despite regulatory uncertainty. Millions of users have been trading cryptocurrencies through informal channels, prompting authorities to consider a more structured and transparent approach that brings these activities into the structured economy.
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