The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency businesses, allowing banks and financial institutions to offer their services to licensed crypto firms. However, these institutions are still barred from using their own funds or customer deposits to invest in, trade, or hold cryptocurrency. This move follows the recent implementation of the Virtual Assets Act of 2026, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector.
The new rules permit regulated banks to open accounts for crypto companies approved by the regulatory authority, provided they adhere strictly to anti-money laundering and know-your-customer regulations. The central bank has outlined detailed conditions for onboarding crypto firms, including license verification, enhanced due diligence, and ongoing transaction monitoring.
This development comes after Pakistan signed an agreement with Binance to explore tokenization opportunities and announced plans to accelerate crypto adoption and launch a national stablecoin, with approximately 40 million of its citizens already involved in crypto trading.