The central bank of Pakistan has officially lifted its seven-year ban on banks providing services to cryptocurrency companies. However, financial institutions are still barred from using their own funds or customer deposits to invest in, trade, or hold cryptocurrency. The new regulations follow the recent passage of the Virtual Assets Act of 2026, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector.
Banks can now open accounts for crypto firms licensed under the new act, as well as for 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 comes after the Pakistani government signed an agreement with Binance to explore tokenizing up to $2 billion in bonds and commodity reserves. The country aims to accelerate crypto adoption, leverage Bitcoin mining, and launch a national stablecoin, with approximately 40 million of its citizens, or 17% of the population, already involved in crypto trading.