The State Bank of Pakistan has officially lifted its seven-year ban on providing services to cryptocurrency businesses, notifying all banks and financial institutions that they can now open accounts for licensed crypto firms. However, banks are still barred from using their own funds or customer deposits to invest in, trade, or hold digital assets.
This move follows the recent enactment of the Virtual Assets Act of 2026, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector. Under the new framework, regulated banks can provide services to licensed virtual asset service providers, as well as 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 an agreement 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 now the third-largest crypto market by retail activity.