The State Bank of Pakistan (SBP) has authorized licensed virtual asset service providers to open bank accounts, marking a significant departure from its previous restrictions on cryptocurrency-related businesses. This policy change effectively overturns the 2018 ban on crypto activities following the enactment of the Virtual Assets Act, 2026.
In a notable development, the SBP issued a circular outlining the new regulations, which were also highlighted by the country’s virtual asset regulator. This move represents Pakistan’s initial formal effort to incorporate digital assets into the regulated financial sector, ensuring compliance with stringent anti-money laundering and regulatory standards.
Bilal bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority, described this as a foundational step toward integrating virtual assets within Pakistan’s formal financial infrastructure.
Under the updated framework, banks must verify licenses granted by the newly established regulator before onboarding virtual asset firms. Additionally, banks are required to maintain segregated, non-interest-bearing rupee accounts for their clients involved in virtual asset transactions.
The central bank emphasized that financial institutions will continue to bear responsibility for conducting due diligence, risk assessments, and reporting any suspicious activities. Furthermore, banks are prohibited from investing in or holding virtual assets using their own capital or customer deposits.
Pakistan has recently intensified its engagement with global cryptocurrency and blockchain entities. In December, the country signed an agreement with Binance to explore the tokenization of assets valued at up to $2 billion. Initial clearances for licensing discussions were also granted to Binance and HTX.
In January, Pakistan entered into a partnership with an affiliate of World Liberty Financial to investigate stablecoin-based cross-border payment solutions.
Officials indicate that this latest decision reflects a broader initiative to modernize the financial system while maintaining robust regulatory oversight over emerging digital asset markets.
