The State Bank of Pakistan has officially lifted its ban on providing banking services to cryptocurrency businesses, allowing banks to open accounts for licensed virtual asset service providers. However, financial institutions are still barred from using their own funds or customer deposits to invest in, trade, or hold cryptocurrencies.
This move follows the introduction of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority to oversee the industry. Under the new framework, banks can provide services to licensed crypto firms and those seeking approval, provided they adhere to stringent anti-money laundering, know-your-customer, and counter-terrorism financing regulations. The central bank has outlined detailed conditions for onboarding crypto companies, including mandatory license verification, enhanced due diligence, and ongoing transaction monitoring.
Recent developments in Pakistan's crypto space include a partnership between the government and Binance to explore tokenization, as well as plans to accelerate 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.