The State Bank of Pakistan has officially lifted its seven-year ban on providing banking services to cryptocurrency firms. However, financial institutions are still barred from using their own funds or customer deposits to invest in, trade, or hold crypto assets.
This move comes after the enactment of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority (PVARA) to oversee the sector. The new rules allow banks to open accounts for crypto companies licensed by PVARA, as well as those seeking approval, 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 mandatory license verification, enhanced due diligence, and ongoing transaction supervision. This development follows a recent memorandum of understanding between the Pakistani government and Binance to explore tokenizing up to $2 billion in bonds, treasury bills, and commodity reserves. Additionally, Pakistan's Virtual Assets Regulatory Authority has announced plans to accelerate crypto adoption, leverage Bitcoin mining, and launch a national stablecoin, with approximately 40 million Pakistanis, or 17% of the population, already involved in crypto trading.