The State Bank of Pakistan has officially lifted its seven-year ban on providing banking services to cryptocurrency companies. However, financial institutions are still not allowed to use 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 industry. The new rules allow 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 companies, including license verification, enhanced due diligence, and ongoing transaction monitoring. This development comes after the Pakistani government signed a memorandum of understanding with Binance to explore the tokenization of government assets 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 one of the largest retail crypto markets in the world.