Summary
- Pakistan’s central bank said it will allow licensed cryptocurrency businesses to open bank accounts in the country.
- Reuters said the move follows this year’s enactment of a cryptocurrency law and is part of an effort to integrate digital assets into the regulated financial system.
- Pakistan said it has signed agreements with Binance on asset tokenization and with WLFI on stablecoin-based cross-border payments as it seeks to attract global crypto companies.
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Pakistan’s central bank has allowed licensed cryptocurrency firms to open bank accounts in the country, reversing a 2018 ban.
The State Bank of Pakistan said in a statement on Aug. 15 that licensed crypto businesses can open bank accounts. Reuters reported the move follows the enactment of a cryptocurrency law this year and forms part of Pakistan’s effort to integrate digital assets into the regulated financial system.
The central bank had barred crypto companies from opening bank accounts in 2018. Bilal Bin Saqib, head of the Pakistan Virtual Assets Regulatory Authority, called the decision an important first step toward bringing cryptocurrency into Pakistan’s formal financial system.
Banks that open accounts for crypto companies must still comply with requirements including customer due diligence, risk assessments and suspicious transaction reporting. Lenders also cannot invest their own funds or client money in cryptocurrencies.
Pakistan has recently stepped up efforts to attract global crypto companies. In December, it signed a memorandum of understanding with Binance to explore the potential tokenization of assets worth as much as $2 billion. In January, it also signed an agreement with World Liberty Financial, or WLFI, on introducing stablecoin-based cross-border payments.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
