The State Bank of Pakistan has officially lifted its seven-year ban on providing services to cryptocurrency companies, allowing banks to open accounts for licensed virtual asset service providers. However, these banks are not permitted to use their own funds or customer deposits to invest in, trade, or hold digital assets. This move follows the recent passage of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector. The new rules enable banks to provide services to licensed virtual asset service providers, as well as those seeking approval, provided they comply with strict anti-money laundering, know-your-customer, and counter-terrorism financing regulations.
The central bank has outlined detailed conditions for onboarding cryptocurrency firms, including mandatory license verification, enhanced due diligence, and ongoing transaction supervision. This development comes after the Pakistani government signed a memorandum of understanding with Binance to explore tokenizing up to $2 billion in bonds, treasury bills, and commodity reserves. The country aims to accelerate cryptocurrency adoption, leverage Bitcoin mining, and launch a national stablecoin, with approximately 40 million people, or 17% of the population, already involved in cryptocurrency trading.