Pakistan Revokes Seven-Year Crypto Ban, Permitting Banks to Offer Services to Crypto Providers

The State Bank of Pakistan has officially lifted its ban on providing banking services to cryptocurrency firms, allowing financial institutions to open accounts for licensed crypto businesses. However, banks are still barred from using their own funds or customer deposits to invest in, trade, or hold crypto assets. This move follows the introduction of the 2026 Virtual Assets Act, which establishes a regulatory authority to oversee the sector. The new rules enable banks to provide services to licensed virtual asset service providers and those seeking approval, provided they adhere to strict anti-money laundering and know-your-customer regulations. The central bank has outlined detailed conditions for onboarding crypto firms, including license verification, enhanced due diligence, and ongoing transaction monitoring. This development comes after Pakistan signed an agreement with Binance to explore tokenization opportunities and announced plans to accelerate crypto adoption and launch a national stablecoin. With approximately 40 million people, or 17% of the population, involved in crypto trading, Pakistan is now the third-largest crypto market by retail activity.