The State Bank of Pakistan has officially lifted its seven-year ban on providing services to cryptocurrency firms, allowing banks to open accounts for approved crypto businesses. However, financial institutions are still barred from using their own funds or customer deposits to invest in, trade, or hold crypto assets. This move 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 regulations, banks can offer services to licensed virtual asset service providers, as well as those seeking approval, provided they adhere to strict anti-money laundering, know-your-customer, and counter-terrorism financing rules.
The central bank has outlined detailed conditions for onboarding crypto firms, including mandatory license verification, enhanced due diligence, and ongoing transaction monitoring. This development comes after the Pakistani government signed a memorandum of understanding with Binance to explore tokenizing up to $2 billion in bonds and commodities. The country's Virtual Assets Regulatory Authority has also announced plans to accelerate crypto adoption, leverage Bitcoin mining, and introduce a national stablecoin, with approximately 40 million people, or 17% of the population, already involved in crypto trading.