Pakistan’s central bank has notified all banks and financial institutions that the country’s seven-year ban on providing Bitcoin & crypto services has been lifted.
The move follows the enactment of the 2026 Virtual Assets Act, which established Pakistan’s Virtual Asset Regulatory Authority (PVARA) to license, regulate and supervise the sector.
What banks can and can’t do
While banks may now serve licensed crypto firms, they remain barred from investing, trading or holding crypto assets using their own funds or customer deposits.
Under the new framework, banks can open accounts for virtual asset service providers (VASPs) licensed under PVARA, including those still seeking approval, provided they comply with strict anti-money laundering (AML), know-your-customer (KYC), and counter-terrorism financing rules.
The State Bank of Pakistan stated:
“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.”
Pakistan’s broader crypto ambitions
The banking rule change is just one piece of a broader push.
In December 2025, Pakistan and Binance signed a memorandum of understanding to explore the tokenization of up to $2 billion in bonds, treasury bills and commodity reserves.
That same month, PVARA Chairman Bilal Bin Saqib announced plans to accelerate crypto adoption, expand bitcoin mining, and launch a national stablecoin.
A massive retail market
Pakistan already has roughly 40 million people — about 17% of the population — involved in crypto trading, making it the third-largest crypto market by retail activity, ahead of Germany and Japan.
