The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency companies, notifying all financial institutions in the country of the change. 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 passage of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority (PVARA) to oversee the sector. The new rules allow regulated banks to open accounts for crypto firms licensed by PVARA, as well as those awaiting approval, provided they comply with anti-money laundering and know-your-customer regulations. The central bank has outlined strict conditions for onboarding crypto companies, including license verification and ongoing transaction monitoring. This development comes after the Pakistani government signed an agreement with Binance to explore tokenizing bonds and commodity reserves, and announced plans to accelerate crypto adoption and launch a national stablecoin.
With around 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.