Pakistan allows banks crypto access under strict rules

Pakistan has lifted a seven-year ban on crypto services, allowing banks to work with licensed digital asset firms under a new regulatory framework.

The move follows the 2026 Virtual Assets Act, which established the Pakistan Virtual Asset Regulatory Authority to oversee licensing and supervision of the sector.

Banks can now open accounts for approved crypto providers but remain prohibited from trading, investing in, or holding digital assets using their own or customer funds.

“Subject to strict compliance with the conditions outlined herein, SBP Regulated Entities may open bank accounts of entities duly licensed by PVARA as Virtual Asset Service Providers,”

Said the State Bank of Pakistan.

The framework imposes strict AML and KYC requirements, including enhanced due diligence, licence verification, and ongoing transaction monitoring for all crypto-related activity.

Pakistan is already one of the world’s largest retail crypto markets, with around 40 million users, and is exploring initiatives including Bitcoin mining, tokenised state assets, and a national stablecoin.

The policy shift also follows a memorandum of understanding with Binance to explore tokenising up to $2 billion in government-backed financial instruments.

At the time of reporting, Bitcoin price was $74,673.00.