The State Bank of Pakistan has officially lifted its ban on providing banking services to crypto businesses, allowing financial institutions 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 cryptocurrency.
This move follows the introduction 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 offer services to licensed virtual asset service providers, as well as those awaiting approval, provided they adhere to stringent anti-money laundering and know-your-customer regulations. The central bank has outlined detailed conditions for onboarding crypto companies, including mandatory license verification 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. Approximately 40 million people in Pakistan, or around 17% of the population, are involved in cryptocurrency trading, making it the third-largest retail crypto market.