The Reserve Bank of Pakistan has implemented a significant regulation that closely affects the cryptocurrency sector.
According to Reuters, the bank lifted a ban that had been in place for nearly eight years, allowing Virtual Asset Service Providers (VASPs) to open bank accounts. This decision is seen as a critical step towards integrating crypto assets into the formal financial system in the country.
According to the new regulation, banks in Pakistan will be able to accept cryptocurrency companies as clients after completing the necessary license verifications. This will require VASPs (Variable Rate Subsidies for Businesses) to possess valid licenses issued by the government. The aim is to create a more transparent and auditable structure for companies operating in the sector.
On the other hand, the regulation also imposes certain restrictions on banks. Banks will continue to be prohibited from investing customer funds in crypto assets or directly holding cryptocurrencies. This approach is said to aim at keeping risks under control in the financial system.
Experts say the decision could accelerate the development of the cryptocurrency sector in Pakistan. It is anticipated that crypto companies, which have long faced difficulties accessing the banking system, will now have easier access to financial services.
It is emphasized that this step is also important in terms of strengthening the regulatory framework and increasing investor confidence. Pakistan’s move is among the developments indicating the increasing acceptance of crypto assets on a global scale.
*This is not investment advice.