The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency companies, notifying all banks and financial institutions that they can now offer their services to these firms. However, the new rules stipulate that banks are not allowed to use their own funds or customer deposits to invest in, trade, or hold cryptocurrency assets.
This development comes after the enactment of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector. The new framework permits regulated banks and financial institutions to open accounts for cryptocurrency companies that have been approved by the regulatory authority, provided they comply with strict anti-money laundering and know-your-customer regulations. Banks can now provide services to licensed virtual asset service providers, as well as those seeking approval, under the condition that they adhere to these regulations. The central bank has outlined detailed conditions for onboarding cryptocurrency firms, including mandatory license verification, enhanced due diligence, and ongoing supervision of transactions.
This move follows a recent partnership between the Pakistani government and a major cryptocurrency exchange to explore tokenization opportunities, as well as plans to accelerate cryptocurrency adoption and launch a national stablecoin. With approximately 40 million people, or 17% of the population, involved in cryptocurrency trading, Pakistan is one of the largest crypto markets globally.