The State Bank of Pakistan (SBP) has provided clarity regarding its position on digital assets, emphasizing that they haven’t declared their ownership or trading illegal. The SBP clarified this in a press release, attributing earlier warnings to a precautionary measure aimed at mitigating potential negative impacts on Pakistani citizens. Previously, the bank issued advisories discouraging financial institutions from dealing with virtual assets, but now clarifies that these were not bans. Instead, the move was intended to protect financial institutions and their users. 2023 has seen a flurry of activity surrounding digital asset regulations, with the SBP working on establishing a more comprehensive framework for regulating these assets in the country while ensuring investor protection and consumer safety. This follows discussions within the National Assembly’s Standing Committee on Finance where questions arose regarding trading and ownership of digital assets in Pakistan being illegal. However, the SBP assures that it’s not about outright bans but rather developing a legal framework for digital asset usage.