The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency firms, notifying all banks and financial institutions that they are now allowed to offer their services to these companies. However, banks are still not permitted to use their own funds or customer deposits to invest, trade, or hold cryptocurrencies. This decision comes after the introduction of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority to oversee and regulate the sector.
Under the new rules, banks can open accounts for crypto companies that have been approved or are seeking approval under the regulatory authority, provided they comply with strict anti-money laundering, know-your-customer, and counter-terrorism financing regulations. The central bank has outlined specific conditions for onboarding crypto firms, including verification of licenses, enhanced due diligence, and ongoing supervision of transactions. This move follows a recent agreement between the Pakistani government and Binance to explore tokenization opportunities, as well as plans to promote crypto adoption, leverage Bitcoin mining, and launch a national stablecoin. With approximately 40 million people, or 17% of the population, involved in crypto trading, Pakistan is now the third-largest crypto market by retail activity.