The State Bank of Pakistan has officially lifted its seven-year ban on providing services to cryptocurrency companies, allowing banks and financial institutions to open accounts for crypto firms. However, banks are still barred from using their own funds or customer deposits to invest in, trade, or hold cryptocurrency.
This development follows the recent passage of the Virtual Assets Act of 2026, 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 seeking approval, provided they comply with strict anti-money laundering, know-your-customer, and counter-terrorism financing regulations. The move is part of Pakistan's efforts to accelerate crypto adoption, with roughly 40 million of its citizens, or about 17% of the population, already involved in crypto trading.