SBP clarifies virtual assets not illegal, cites lack of regulation in 2018 advisory

May 30, 2025 (MLN): The State Bank of Pakistan (SBP) clarifies that, in 2018, it advised its regulated entities to avoid dealing in Virtual Assets (VAs) due to the absence of any legal and regulatory framework for VAs, not because they were declared illegal in the country.

These entities include Banks, Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Electronic Money Institutions (EMIs), Payment System Operators (PSOs), Payment Service Providers (PSPs), and Exchange Companies.

This clarification is with reference to the news items regarding the 14th meeting of the National Assembly’s Standing Committee on Finance and Revenue, as per the press release issued.

This was done to protect its regulated entities and their customers from the risks arising due to the absence of a legal and regulatory framework for VAs in the country.

The SBP and the Finance Division are currently engaged with the Pakistan Crypto Council, established by the Federal Government, for, among other things, developing an appropriate legal and regulatory framework for VAs in Pakistan.

The SBP understands that the legal and regulatory framework would provide the requisite clarity and legal coverage about VAs, ensuring consumer and investor protection.

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