Pakistan Mulls Lifting State Bank’s Ban on Cryptocurrency

Pakistan has taken a significant step toward embracing the digital economy as the Pakistan Virtual Assets Regulatory Authority (PVARA) held its first board meeting today. The meeting focused on shaping the future of virtual assets, blockchain technology, and cryptocurrency regulations in the country.

One of the most notable developments discussed was the potential withdrawal of the State Bank of Pakistan’s (SBP) ban on cryptocurrencies imposed under BPRD Circular No. 03 of 2018, which prohibited financial institutions from dealing in virtual currencies and digital tokens.

The Authority has approved the creation of a dedicated complaint portal, developed in collaboration with the National Cyber Crime Investigation Agency (NCCIA). This platform will allow individuals and businesses to:

• Report fraud and scams involving cryptocurrencies

• Lodge complaints regarding virtual asset transactions

• Receive timely resolutions and support from regulators

The Board deliberated extensively on reviewing and potentially withdrawing the 2018 SBP circular. If approved, this move could:

• Enable financial institutions to engage with cryptocurrency exchanges

• Promote blockchain adoption in fintech and digital payment solutions

• Attract foreign investments in Pakistan’s growing virtual asset ecosystem

Finance Minister hailed the establishment of PVARA as a milestone in Pakistan’s journey towards digital transformation. He highlighted the Authority’s role in:

• Aligning regulations with international AML/CFT standards

• Creating a secure and transparent framework for virtual assets

• Positioning Pakistan as a competitive player in the global crypto economy

The Pakistan Crypto Council played a crucial role in consulting stakeholders, experts, and financial institutions to lay the groundwork for PVARA’s establishment. This collaboration is expected to ensure:

• Smooth policy implementation

• Better industry compliance

• Increased trust in Pakistan’s digital finance ecosystem

If the crypto ban is lifted, Pakistan could witness:

• Growth in blockchain startups and fintech innovation

• Increased foreign direct investment (FDI) in the digital finance sector

• Opportunities for freelancers and IT professionals to receive payments via crypto wallets

• Enhanced cross-border trade through secure and faster transactions

Experts believe this could be a turning point for Pakistan’s economy, unlocking new investment opportunities and paving the way for technological innovation.

The Pakistan Virtual Assets Regulatory Authority is set to redefine the country’s approach to digital assets. By working towards lifting the State Bank’s crypto restrictions and implementing robust frameworks, PVARA aims to:

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