The State Bank of Pakistan has officially lifted its ban on providing services to cryptocurrency firms, notifying all banks and financial institutions that they are permitted to do so. However, banks are still barred from using their own funds or customer deposits to invest in, trade, or hold cryptocurrencies. This decision follows the introduction of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority (PVARA) to oversee the sector.
The new rules allow regulated banks to open accounts for crypto firms licensed by PVARA, provided they adhere strictly to anti-money laundering, know-your-customer, and counter-terrorism financing regulations. The central bank has outlined detailed conditions for onboarding crypto firms, including license verification, enhanced due diligence, and ongoing transaction monitoring.
This development comes after Pakistan signed an agreement with Binance to explore tokenizing up to $2 billion in bonds and commodity reserves, and announced plans to accelerate crypto adoption and launch a national stablecoin. With approximately 40 million people, or 17% of its population, involved in crypto trading, Pakistan is the third-largest retail crypto market, surpassing countries like Germany and Japan.