The State Bank of Pakistan has notified all banks and financial institutions that the ban on providing services to crypto companies has been lifted. However, the new rules stipulate that banks are not permitted to invest in, trade, or hold cryptocurrency using their own funds or customer deposits. This move follows the recent introduction of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector. The central bank has replaced its 2018 ban with new regulations that allow regulated banks and financial institutions to open accounts for crypto firms approved by the authority.
Under the new framework, banks can provide services to licensed virtual asset service providers, as well as those seeking approval, provided they comply with strict anti-money laundering, know-your-customer, and counter-terrorism financing regulations. The State Bank of Pakistan has outlined detailed conditions for onboarding crypto companies, including mandatory license verification, enhanced due diligence, and ongoing transaction supervision.
Recently, the Pakistani government signed an agreement with Binance to explore tokenization opportunities, and the Chairman of the Virtual Assets Regulatory Authority announced plans to accelerate crypto adoption and launch a national stablecoin. With approximately 40 million people, or 17% of the population, involved in crypto trading, Pakistan is the third-largest crypto market by retail activity.