Pakistan allows banks to serve licensed crypto firms after years-long ban

Pakistan’s central bank has allowed banks to open accounts for licensed virtual asset service providers (VASPs) and their customers, replacing an eight-year-old prohibition on dealing in virtual currencies.

In a circular dated April 14, the State Bank of Pakistan (SBP) said regulated entities may open bank accounts for entities licensed by the Pakistan Virtual Assets Regulatory Authority (PVARA), the statutory body responsible for licensing, regulation and oversight of virtual asset activities in the country.

The move follows Pakistan’s passage of the Virtual Assets Act 2026 in March and marks a shift toward a more formal regulatory framework for digital assets after years of restrictions following an outright ban in 2018.

Authorities have recently signaled a more structured approach to the sector, including holding discussions with major exchanges such as Binance and HTX in December 2025, as part of efforts to attract regulated trading platforms.

In parallel, Pakistan has also explored blockchain-based financial infrastructure through engagements with affiliates of World Liberty Financial, including discussions around the use of stablecoins for cross-border payments.

Banking access opens under strict regulatory framework

Under the new framework, regulated entities shall not invest, trade or hold virtual assets using their own funds or customer deposits, the circular states, emphasizing that banks’ role is limited to providing banking services to licensed firms.

BPRD circular letter. Source: Pakistan VARA

The SBP added that banks remain responsible for complying with all applicable central bank regulations, including foreign exchange rules, and that any arrangement with a VASP does not absolve them of those obligations.