No legal framework exists: FIs must avoid deals involving VAs: SBP
KARACHI: The State Bank of Pakistan (SBP) on Friday said it has directed financial institutions to refrain from engaging in transactions involving Virtual Assets (VAs), citing the lack of a legal and regulatory framework governing such activities.
With reference to the news items regarding the 14th meeting of the National Assembly's Standing Committee on Finance and Revenue, SBP has clarified, in 2018 SBP advised its regulated entities including Banks, Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Electronic Money Institutions (EMIs), Payment System Operators (PSOs), Payment Service Providers (PSPs), and Exchange Companies to avoid dealing in Virtual Assets (VAs) due to the absence of any legal and regulatory framework for the VAs; not because it was declared illegal in the country.
SBP, Finance ministry inform NA body: 'Cryptocurrency is not legal in Pakistan'
This was done to protect its regulated entities and their customers from the risks emanating due to the absence of legal and regulatory framework for VAs in the country, the SBP said.
The SBP and Finance Division are currently engaged with the Pakistan Crypto Council established by the Federal Government for, among others, developing an appropriate legal and regulatory framework for VAs in Pakistan, it added.'We understand that the legal and regulatory framework would provide the requisite clarity and legal coverage about the VAs ensuring consumer and investor protection,' the SBP concluded.
Copyright Business Recorder, 2025
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