The State Bank of Pakistan has officially lifted its seven-year ban on crypto services, allowing banks and financial institutions to provide services to licensed crypto companies. However, these institutions are not allowed to use their own funds or customer deposits to invest in, trade, or hold cryptocurrencies.
This move follows the introduction of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector. The new rules permit banks to open accounts for crypto firms that have been approved under the regulatory authority, 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. Recently, Pakistan's government signed an agreement with Binance to explore tokenizing up to $2 billion in bonds and commodities, and the country's regulatory authority has 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 the third-largest retail crypto market, surpassing countries like Germany and Japan.