Israel, Pakistan, Hong Kong Integrate Crypto Into Banking
Three major jurisdictions are racing to integrate crypto into their financial systems. Pakistan reversed its 2018 crypto ban, while Hong Kong licensed HSBC and Anchorpoint as stablecoin issuers on April 10.
Key Takeaway
Countries are racing to wire crypto into banking instead of banning it outright.
Israel's Capital Market Authority approved Bits of Gold's shekel-pegged stablecoin, called BILS, after a two-year pilot. The Israeli crypto firm designed the stablecoin on Solana with support from Fireblocks, QEDIT, EY, and the Solana Foundation.
Pakistan's State Bank issued BPRD Circular Letter No. 10 of 2026, replacing FE Circular No. 3 of 2018 that banned virtual currencies. The new circular permits SBP-regulated entities to open bank accounts for VASPs and their customers, tied to compliance with Pakistan's virtual-asset framework. Chainalysis ranked Pakistan among leading crypto adoption countries despite the earlier prohibition.
Hong Kong's Monetary Authority granted stablecoin issuer licenses to Anchorpoint Financial Limited and HSBC, effective April 10. The move follows licensing frameworks already active in the UAE, South Korea, Japan, the UK, EU, Brazil, Singapore, and Thailand.
Japan's Financial Services Agency recommended shifting crypto regulation from the Payment Services Act to the Financial Instruments and Exchange Act. The FSA wants stronger user protection, market-abuse rules, insider-trading controls, and expanded powers for the Securities and Exchange Surveillance Commission. The recommendations require Diet approval, with licensing frameworks now active across multiple jurisdictions as of April 2026.
This article was written based on reporting from CryptoSlate.
