Regulatory Alerts2026-04-14 | BPRD Circular Letter No. 10Authorizing Bank Accounts for PVARA-Licensed VASPs and Their Customers
The State Bank of Pakistan authorizes its regulated banking entities to open dedicated PKR-denominated transactional accounts for Virtual Asset Service Providers licensed or holding no-objection certificates from the Pakistan Virtual Asset Regulatory Authority. Banks must verify PVARA licenses, maintain strictly segregated Client Money Accounts without cash transactions or collateral usage, and conduct enhanced due diligence alongside risk-based monitoring. The circular explicitly prohibits banks from investing or holding virtual assets with their own funds, mandates suspicious transaction reporting, and retains full regulatory responsibility for all VASP-related arrangements.
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