The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency firms, allowing banks and financial institutions to open accounts for licensed crypto providers. However, these institutions are still barred from using their own funds or customer deposits to invest in, trade, or hold crypto assets. This move comes after the introduction of the 2026 Virtual Assets Act, which led to the establishment of the Pakistan Virtual Asset Regulatory Authority (PVARA).
Under the new rules, banks can offer services to virtual asset service providers (VASPs) that are licensed or seeking approval under PVARA, provided they adhere to strict anti-money laundering, know-your-customer, and counter-terrorism financing regulations. The central bank has outlined specific conditions for onboarding crypto firms, including mandatory license verification, enhanced due diligence, and ongoing transaction supervision.
This development follows recent announcements, including a memorandum of understanding between the Pakistani government and Binance to explore tokenizing bonds and commodity reserves, as well as plans to accelerate crypto adoption and launch a national stablecoin. With approximately 40 million people, or 17% of the population, involved in crypto trading, Pakistan is a significant player in the global crypto market.