The State Bank of Pakistan has officially lifted its ban on banks providing services to cryptocurrency businesses, allowing them to open accounts for licensed crypto firms. However, banks are still restricted from using their own funds or customer deposits to invest in, trade, or hold crypto assets. This move comes after the introduction of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector.
Under the new framework, banks can provide services to licensed virtual asset service providers, as well as those awaiting approval, provided they adhere to stringent anti-money laundering, know-your-customer, and counter-terrorism financing regulations. The central bank has outlined detailed conditions for onboarding crypto firms, including mandatory license verification, enhanced due diligence, and ongoing transaction supervision.
This development follows a recent partnership between the Pakistani government and Binance to explore tokenization opportunities, as well as 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 a significant player in the global crypto market.