Pakistan Central Bank Clarifies Stance on Digital Assets

The State Bank of Pakistan has clarified its advisory on VIRTUAL assets, emphasizing that it was never an outright ban but a precautionary measure to mitigate risks for financial institutions and their customers. The central bank’s directive initially instructed banks and other financial service providers to refrain from dealing in digital assets, aiming to curb potential negative impacts on residents.

Regulatory clarity remains a priority. The SBP acknowledged the need for a formal framework to define the legal status of cryptocurrencies, ensuring investor protection and consumer safeguards. This follows recent discussions with the National Assembly’s Standing Committee on Finance, where concerns were raised about the legality of trading and holding digital assets in Pakistan.

Cryptocurrency transactions must now be reported to the Financial Monitoring Unit, signaling a MOVE toward oversight rather than prohibition. The shift reflects a growing recognition of digital assets’ role in the financial ecosystem, albeit with measured caution.