The State Bank of Pakistan has officially lifted its ban on providing services to crypto businesses, allowing banks and financial institutions to open accounts for licensed cryptocurrency firms. However, these institutions are still barred from using their own funds or customer deposits to invest in, trade, or hold cryptocurrencies. This move comes after the introduction of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector. Under the new framework, banks can provide services to licensed virtual asset service providers, as well as those awaiting approval, provided they adhere to strict anti-money laundering, know-your-customer, and counter-terrorism financing regulations.
The central bank has outlined detailed conditions for onboarding crypto firms, including license verification, enhanced due diligence, and ongoing transaction supervision. This development follows a recent partnership between the Pakistani government and Binance to explore tokenization opportunities and statements from the Virtual Assets Regulatory Authority about plans to promote crypto adoption and launch a national stablecoin. With around 40 million people, or 17% of the population, involved in cryptocurrency trading, Pakistan is a significant market, ranking third in retail activity globally.