The State Bank of Pakistan has officially lifted its seven-year 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 crypto assets. This move follows the recent passage of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority (PVARA) to oversee the sector.
The new rules permit regulated banks to provide services to virtual asset service providers (VASPs) that are licensed or seeking approval under PVARA, provided they adhere to strict anti-money laundering, know-your-customer, and counter-terrorism financing regulations. The central bank has outlined detailed conditions for onboarding crypto firms, including license verification, enhanced due diligence, and ongoing transaction supervision. This development comes after the Pakistani government signed a memorandum of understanding with Binance to explore tokenizing up to $2 billion in bonds and commodity reserves.
The country aims to accelerate crypto adoption, leverage Bitcoin mining, and launch a national stablecoin, with approximately 40 million people, or 17% of the population, already involved in crypto trading, making Pakistan the third-largest crypto market by retail activity.