Banks in Pakistan can now officially open accounts for licensed cryptocurrency companies, marking the end of a significant banking restriction that has lingered since 2018.
Strict Rules Come With The New Access
On April 14, 2026, the State Bank of Pakistan reiterated its commitment to supporting regulated cryptocurrency businesses by issuing a circular that details the operational framework. Under this new directive, banks are allowed to provide services exclusively to entities licensed by the Pakistan Virtual Assets Regulatory Authority (PVARA), which oversees the licensing and regulation of virtual assets in the country. However, this access comes with stringent conditions.
Importantly, banks are prohibited from investing, trading, or holding virtual assets using their own funds or customer deposits. Their involvement is limited to providing essential banking services solely for licensed firms.
Moreover, banks must establish separate rupee-denominated accounts, dubbed Client Money Accounts, specifically for settling authorized transactions. Crucially, VASP funds must not be intertwined with client assets.
To ensure compliance and security, banks are mandated to conduct comprehensive due diligence on every virtual asset firm before engaging in banking relations. They must also adjust their risk profiles to consider crypto-related exposures and remain vigilant about reporting suspicious activities to Pakistan’s Financial Monitoring Unit.
All existing foreign exchange protocols and central bank regulations will continue to apply. It is essential to note that collaborating with a licensed crypto firm does not exempt banks from adhering to these regulations.
Pakistan has taken an important step toward formalising its virtual asset ecosystem.
Following the enactment of the Virtual Assets Act, 2026, the State Bank of Pakistan has issued BPRD Circular Letter No. 10 of 2026, enabling regulated entities to open and maintain bank accounts… pic.twitter.com/cuUhwSiCfS— Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) April 14, 2026
Eight Years Of Restrictions Now Behind Them
Since 2018, Pakistan has prohibited virtual currency transactions outright, leaving crypto companies without access to essential banking services for nearly eight years. This landscape shifted dramatically following the adoption of the Virtual Assets Act 2026 in March and the subsequent circular from the central bank in April.
Prior to these developments, the government had been diligently preparing, holding discussions with major exchanges, including Binance and HTX in December 2025, to navigate the reintroduction of regulated trading platforms into Pakistan.
In parallel, the country has investigated leveraging blockchain-based financial infrastructure through collaborations with World Liberty Financial affiliates, focusing on employing stablecoins for cross-border payments.
A Regulated Path Forward For Digital Assets
PVARA has now established itself at the core of this evolving system. Any virtual asset service provider seeking banking services must first obtain licensing through this regulatory authority. Consequently, banks are required to continuously evaluate these firms, maintaining due diligence beyond the initial onboarding process.
Despite the previous ban, reports indicate a burgeoning crypto activity in Pakistan, fueled partly by a significant diaspora that regularly remits money home. This reality has spurred the country’s interest in employing stablecoins for remittances.
The recent circular underscores a monumental shift in Pakistan’s approach, establishing a legal pathway for licensed crypto firms to access banking services. As the crypto landscape develops, it remains to be seen whether banks will eagerly embrace this new clientele or adopt a more cautious, conservative approach.
Featured image from ProPakistani, chart from TradingView
