The State Bank of Pakistan has informed all banks and financial institutions that the longstanding ban on providing services to crypto companies has been lifted. However, the new regulations stipulate that banks are not allowed to use their own funds or customer deposits to invest in, trade, or hold cryptocurrency.
This move follows the recent passage of the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority (PVARA) to oversee and regulate the sector. The central bank has replaced its 2018 ban with new rules, enabling regulated banks and financial institutions to open accounts for crypto firms licensed by PVARA.
Under the new framework, banks can offer services to virtual asset service providers (VASPs) that have been licensed under the new crypto act, as well as to those awaiting approval, provided they adhere strictly to anti-money laundering (AML), know-your-customer (KYC), and counter-terrorism financing regulations. The State Bank of Pakistan has outlined specific conditions for onboarding crypto firms, including mandatory license verification, enhanced due diligence, and ongoing transaction monitoring.
Recently, the Pakistani government and Binance signed a memorandum of understanding (MOU) to explore tokenizing up to $2 billion in bonds, treasury bills, and commodity reserves. Additionally, the Chairman of Pakistan's Virtual Assets Regulatory Authority announced plans to accelerate crypto adoption, leverage Bitcoin mining, and launch a national stablecoin. Approximately 40 million people, or 17% of Pakistan's population, are involved in crypto trading, making the country the third-largest crypto market by retail activity.