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 restricted from using their own funds or customer deposits to invest in, trade, or hold crypto assets. This move follows the introduction of the Virtual Assets Act of 2026, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector.
As a result, banks can now open accounts for licensed crypto firms and those seeking approval, provided they adhere to strict anti-money laundering, know-your-customer, and counter-terrorism financing regulations. The new framework also outlines conditions for onboarding crypto firms, including license verification, enhanced due diligence, and ongoing transaction monitoring.
This development comes after the Pakistani government signed an agreement with Binance to explore tokenizing bonds and commodity reserves, and announced plans to accelerate crypto adoption and launch a national stablecoin. With around 40 million people, or 17% of the population, involved in crypto trading, Pakistan is now the third-largest crypto market by retail activity.