The State Bank of Pakistan (SBP) has permitted banks to open accounts for licensed virtual asset service providers, effectively reversing its 2018 restriction, according to a central bank circular and a statement from the regulator. The move signals Pakistan’s shift toward integrating digital assets into its formal financial system.
This development follows the passage of the Virtual Assets Act, 2026 and represents the country’s first structured effort to bring crypto-related businesses under regulated banking channels with strict anti-money laundering and compliance measures.
“This is a foundational step in bringing virtual assets into the formal financial system of Pakistan,“ said Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority, in a statement issued Wednesday.
Under the new guidelines, banks are required to verify licences issued by PVARA before onboarding such firms and must maintain segregated, non-interest-bearing client accounts in rupees.
The SBP emphasized that banks will remain responsible for due diligence, risk assessment, and reporting suspicious transactions. It also clarified that financial institutions are not allowed to invest in or hold virtual assets using either their own or clients’ funds.
Pakistan has already taken steps to engage global crypto firms, including signing a memorandum of understanding with Binance in December to explore tokenising up to $2 billion in assets, and granting initial approvals to Binance and HTX to begin the licensing process.
Additionally, the country entered into an agreement with an affiliate of World Liberty Financial in January to explore stablecoin-based cross-border payment solutions.
