The State Bank of Pakistan has officially lifted its seven-year ban on providing banking services to cryptocurrency firms. However, financial institutions are still barred from using their own funds or customer deposits to invest in, trade, or hold cryptocurrencies. This move comes after the introduction of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector.
The new rules enable banks to open accounts for licensed cryptocurrency companies and those awaiting approval, provided they adhere to strict anti-money laundering and know-your-customer regulations. The central bank has outlined detailed conditions for onboarding cryptocurrency firms, including license verification, enhanced due diligence, and ongoing transaction monitoring. This development follows a recent partnership between the Pakistani government and Binance to explore tokenization opportunities, as well as plans to promote cryptocurrency adoption, Bitcoin mining, and a national stablecoin. With approximately 40 million people involved in cryptocurrency trading, Pakistan is one of the largest retail crypto markets worldwide.