The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency firms, notifying all banks and financial institutions that they can now offer services to these companies. However, banks are still barred from using their own funds or customer deposits to invest in, trade, or hold cryptocurrency assets. This move follows the recent passage of the Virtual Assets Act of 2026, which established the Pakistan Virtual Asset Regulatory Authority to oversee and regulate the sector.
The new rules allow regulated banks to open accounts for cryptocurrency companies 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 these companies, including license verification and enhanced due diligence. This development comes after the Pakistani government signed an agreement with Binance to explore tokenization opportunities and announced 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 now the third-largest crypto market by retail activity.