The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency companies, notifying all banks and financial institutions that they are now allowed to offer their services to these firms. However, banks are still barred from using their own funds or customer deposits to invest in, trade, or hold cryptocurrency assets.
This move follows the recent passage of the Virtual Assets Act of 2026, which established the Pakistan Virtual Asset Regulatory Authority to oversee the sector. The new rules permit licensed banks and financial institutions to open accounts for crypto companies that have been approved by the regulatory authority, 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 crypto firms, including mandatory license verification, enhanced due diligence, and ongoing supervision of all transactions. This development comes after the Pakistani government signed an agreement with the world's largest crypto exchange to explore tokenization opportunities and announced plans to accelerate crypto adoption and launch a national stablecoin.
With around 40 million people, or 17% of the population, involved in crypto trading, Pakistan is one of the largest crypto markets in the world.