The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency firms, notifying all banks and financial institutions that they can now offer services to these companies. However, banks are still barred from using their own funds or customer deposits to invest in, trade, or hold cryptocurrencies. This move follows the recent passage of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority (PVARA) to oversee the sector.
The new rules permit regulated banks to open accounts for crypto firms licensed by PVARA, as well as those seeking 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 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. Additionally, the Chairman of PVARA has announced plans to accelerate crypto adoption, leverage Bitcoin mining, and launch a national stablecoin, with approximately 40 million Pakistanis, or 17% of the population, already involved in crypto trading, making the country the third-largest crypto market by retail activity.