The State Bank of Pakistan has officially lifted its ban on providing services to crypto companies, allowing banks and financial institutions to offer their services to these firms. However, banks are not permitted to use 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 to oversee the sector.
The new rules allow licensed virtual asset service providers to open bank accounts, subject to strict anti-money laundering and know-your-customer regulations. This move is expected to boost Pakistan's growing crypto market, with approximately 40 million people, or 17% of the population, already involved in crypto trading.