The State Bank of Pakistan has officially lifted its seven-year ban on crypto services, notifying all banks and financial institutions that they are allowed to provide services to licensed cryptocurrency firms. However, banks are still restricted from using 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 sector. The new rules enable regulated banks to open accounts for approved crypto companies and those seeking approval, provided they adhere to strict anti-money laundering and know-your-customer regulations.
The central bank has outlined detailed conditions for onboarding crypto firms, including mandatory license verification and enhanced due diligence. This development comes after the Pakistani government signed a memorandum of understanding with Binance to explore tokenization opportunities and 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.