SBP Banking Rules for Licensed VASPs: Permissions, Limits and Tax Records

Corrected and source-checked 1 October 2026: Our earlier article stated that crypto disposals were subject to a universal 15% capital-gains tax and that particular exchanges already held full licences. Those assertions were not established by the banking circular and have been removed.

What SBP’s banking circular actually permits

SBP’s BPRD Circular Letter No. 10 of 2026 replaces the 2018 instructions. It states that the Virtual Assets Act 2026 has been enacted and permits regulated entities to open accounts for PVARA-licensed virtual-asset service providers, subject to verification and controls.

Where applicable, client money must be segregated in PKR, non-remunerative accounts without cash deposits or withdrawals. Banks may offer limited-purpose accounts to PVARA NOC holders for licensing formalities; virtual-asset transactional services require a licence. Regulated entities remain bound by due-diligence and foreign-exchange requirements and cannot invest, trade or hold virtual assets using their own funds or customer deposits.

A banking permission is not a tax rate

This circular does not establish a blanket 15% tax on crypto gains. Do not import a percentage from another asset category or confuse an account-opening permission with an income-tax exemption. Your reporting position needs a separate review of the applicable tax law, income category, residence, dates and transaction records.

Consult the FBR Income Tax Ordinance resources for controlling tax provisions. This article does not certify a particular exchange’s licence, an individual transaction’s legality or a taxpayer’s liability.

Practical checks for a business using a service provider

• Obtain the provider’s exact legal name and current authorisation details. A brand name, promotional announcement or NOC should not be treated as proof of a full licence.
• Ask which account is used for client settlement and which services your account is authorised to support.
• Keep the agreement, bank communications, statements and evidence of each receipt or disposal.
• Reconcile platform records with bank movements and explain transfers between your own accounts separately from income.
• Record fees, transaction dates, amounts and the basis used to translate foreign-currency figures into your reporting records.

These are recordkeeping checks, not an endorsement of a platform or a recommendation to acquire virtual assets. They help a taxpayer or adviser examine what happened rather than relying on a broad headline.

Keep the regulatory and filing questions separate

The earlier March parliamentary report concerns a different stage of the framework. Later enactment or banking instructions should be checked in their own documents.

For return preparation, use our document checklist. Our general income and property calculators do not provide a certified crypto-tax computation. Seek advice on the relevant provisions before submitting a return.