The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency companies, allowing banks and financial institutions to offer their services to these businesses. However, banks are still restricted from using their own funds or customer deposits to invest in, trade, or hold cryptocurrencies. This move follows the recent introduction of the Virtual Assets Act of 2026, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector.
As a result, banks can now open accounts for cryptocurrency firms that have been approved by the regulatory authority, provided they adhere to strict anti-money laundering and know-your-customer regulations. The new framework also outlines detailed conditions for onboarding cryptocurrency companies, including mandatory license verification, enhanced due diligence, and ongoing transaction monitoring.
This development comes after the Pakistani government signed a memorandum of understanding with Binance to explore the tokenization of various assets and announced plans to accelerate cryptocurrency adoption and launch a national stablecoin. With approximately 40 million people, or around 17% of the population, involved in cryptocurrency trading, Pakistan is now the third-largest retail cryptocurrency market, surpassing countries like Germany and Japan.