Pakistan's central bank allows banks to serve crypto firms for the first time in five years
Pakistan’s central bank has, for the first time since 2018, officially permitted banks to open accounts for cryptocurrency companies after verifying their licenses. This initiative marks the first major step towards legitimizing the country’s crypto market, although banks remain prohibited from directly investing in or holding cryptocurrencies.
Source Reuters
Previously, Pakistani banks faced regulatory restrictions that prevented them from working with crypto firms, hindering the growth of the local crypto industry. The new regulation now allows banks to verify crypto companies’ licenses and offer official banking services to them.
At the same time, despite this opening, Pakistani banks are still barred from making direct investments in cryptocurrencies or holding them on their balance sheets, reflecting a cautious regulatory stance on the risks associated with digital assets.
Earlier reports indicate Pakistan’s plans to establish a strategic Bitcoin reserve, highlighting the government's gradual interest in cryptocurrencies as a potential financial instrument in the future.
These changes may inaugurate the formal incorporation of cryptocurrencies into Pakistan’s financial system, though further regulatory measures will be necessary to foster market development.
In the near future, it is expected that the central bank will pursue additional regulatory steps to support and regulate the crypto industry, potentially boosting innovation and technological advancement in Pakistan’s financial sector.
