The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency companies, allowing banks and financial institutions to offer their services to these firms. However, banks are still prohibited from investing in, trading, or holding cryptocurrency assets using their own funds or customer deposits.
This move comes after the enactment of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector. The new rules permit regulated banks to open accounts for cryptocurrency firms that have been approved by the regulatory authority, provided they comply with strict anti-money laundering and know-your-customer regulations. The central bank has outlined detailed conditions for onboarding cryptocurrency firms, including mandatory license verification, enhanced due diligence, and ongoing supervision of transactions.
This development follows a recent partnership between the Pakistani government and a major cryptocurrency exchange to explore tokenization opportunities, as well as plans to accelerate cryptocurrency adoption and launch a national stablecoin. With approximately 40 million people, or 17% of the population, involved in cryptocurrency trading, Pakistan is one of the largest cryptocurrency markets in the world.