The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency firms, allowing banks and financial institutions to offer their services to these businesses. However, banks are still not allowed to use their own funds or customer deposits to invest in, trade, or hold cryptocurrency.
This development follows the introduction of the Virtual Assets Act of 2026, which established the Pakistan Virtual Asset Regulatory Authority to oversee and regulate the sector. The new rules enable licensed banks and financial institutions to open accounts for cryptocurrency companies that have been approved by the regulatory authority. These institutions must strictly adhere to anti-money laundering, know-your-customer, and counter-terrorism financing regulations. The central bank has outlined specific conditions for onboarding cryptocurrency firms, including mandatory license verification, enhanced due diligence, and ongoing transaction monitoring.
Recent partnerships, such as the memorandum of understanding between the Pakistani government and Binance, aim to explore the tokenization of various assets and promote cryptocurrency adoption in the country. With approximately 40 million people, or 17% of the population, involved in cryptocurrency trading, Pakistan is a significant player in the global crypto market.