The State Bank of Pakistan has notified all banks and financial institutions that the ban on providing services to cryptocurrency businesses has been lifted. However, the new regulations stipulate that banks are not allowed to invest, trade, or hold cryptocurrencies using their own funds or customer deposits. This move follows the recent introduction of the Virtual Assets Act of 2026, which establishes the Pakistan Virtual Asset Regulatory Authority to oversee the sector. The State Bank of Pakistan has replaced its 2018 ban with new rules, allowing regulated banks and financial institutions to open accounts for cryptocurrency firms approved by the regulatory authority.
Under the new framework, banks can provide services to licensed virtual asset service providers and 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. Recently, the Pakistani government and Binance signed an agreement to explore tokenizing up to $2 billion in bonds, treasury bills, and commodity reserves. The Chairman of Pakistan's Virtual Assets Regulatory Authority has also announced plans to accelerate cryptocurrency adoption, leverage Bitcoin mining, and launch a national stablecoin.
Approximately 40 million people, or 17% of Pakistan's population, are involved in cryptocurrency trading, making the country the third-largest crypto market by retail activity.