In a significant move aimed at boosting the operational efficiency of exchange companies, the State Bank of Pakistan (SBP) has granted permission for these companies to use Virtual Private Networks (VPNs) for conducting international transactions. This decision follows extensive consultations with key industry stakeholders, including financial institutions and security experts, to address concerns regarding the security and privacy of cross-border financial activities.
The use of VPNs will allow exchange companies to secure their communication and transaction channels, protecting sensitive data from cyber threats and potential breaches. The SBP has emphasized that the use of VPNs must comply with the regulatory framework established for foreign exchange transactions, ensuring that these companies continue to operate within the bounds of the law.
Experts believe that this decision will enable exchange companies to better navigate the complexities of global financial markets and improve their ability to carry out transactions without facing disruptions caused by external threats or restrictions.
The State Bank has instructed that all VPN usage be reported and monitored, with strict penalties for any violations of the policy. This move is expected to further strengthen Pakistan’s financial sector, making it more resilient to the evolving challenges of international trade and finance.
