The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency companies, notifying all banks and financial institutions that they are now permitted to do so. However, banks are still barred from using their own funds or customer deposits to invest in, trade, or hold cryptocurrency. This move follows the recent introduction of the Virtual Assets Act of 2026, which established the Pakistan Virtual Asset Regulatory Authority to oversee the industry. The new rules allow regulated banks to open accounts for crypto firms that have been approved by the authority, provided they comply with strict anti-money laundering and know-your-customer regulations.
The central bank has outlined detailed conditions for onboarding crypto companies, including mandatory license verification, enhanced due diligence, and ongoing transaction monitoring. 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 cryptocurrency adoption, leverage Bitcoin mining, and launch a national stablecoin, with around 40 million of its citizens already involved in crypto trading, making it the third-largest retail crypto market.