Pakistan Reverses Seven-Year Crypto Ban, Permitting Banks to Support Digital Asset Providers

The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency businesses, allowing banks and financial institutions to open accounts for licensed crypto firms. However, these institutions are still barred from using their own funds or customer deposits to invest in, trade, or hold digital assets. This move follows the recent passage of the Virtual Assets Act of 2026, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector. The new rules permit regulated banks to provide services to virtual asset service providers, subject to strict adherence to anti-money laundering and know-your-customer regulations. The government has also announced plans to accelerate crypto adoption and explore the tokenization of national assets. With around 40 million people, or 17% of the population, involved in cryptocurrency trading, Pakistan is a significant player in the global crypto market.