The State Bank of Pakistan has officially lifted its seven-year prohibition on banks providing services to cryptocurrency businesses. However, financial institutions are still barred from using their own funds or customer deposits to invest in, trade, or hold digital assets.
This development follows the introduction of the 2026 Virtual Assets Act, which led to the establishment of the Pakistan Virtual Asset Regulatory Authority. The new regulations allow licensed banks and financial institutions to open accounts for crypto firms that have been approved by the regulatory authority, provided they adhere to strict anti-money laundering, know-your-customer, and counter-terrorism financing regulations. The central bank has outlined specific conditions for onboarding crypto companies, including mandatory license verification, enhanced due diligence, and ongoing transaction monitoring.
Recently, the Pakistani government signed an agreement with Binance to explore the tokenization of bonds and commodity reserves. The country aims to accelerate crypto adoption and plans to launch a national stablecoin, with approximately 40 million of its citizens already involved in cryptocurrency trading.