Pakistan lifts crypto service ban for banks

Pakistan has lifted a seven-year ban, permitting banks and financial institutions to provide services to licensed crypto asset providers. This significant regulatory shift allows regulated entities to open accounts for Virtual Asset Service Providers (VASPs) approved by the Pakistan Virtual Asset Regulatory Authority (PVARA). However, banks are still prohibited from trading, investing in, or holding crypto assets themselves. The move aligns with Pakistan's broader strategy to embrace digital assets, including plans for tokenized state assets and a national stablecoin, positioning the country to further integrate into the global crypto economy.