The landscape of digital finance in Pakistan is undergoing a significant transformation as the State Bank of Pakistan allows banks to open accounts for licensed cryptocurrency companies. This pivotal change marks the end of a ban that had been in place since 2018.
New Regulations for Crypto Firms
The April 14 bulletin from the State Bank provides comprehensive guidelines on how banks can engage with licensed crypto entities. Specifically, only those entities authorized by the Pakistan Virtual Assets Regulatory Authority, or PVARA, are allowed to receive banking services. This ensures a structured and monitored approach to virtual asset transactions.
Importantly, banks are limited in their activities; they are prohibited from trading or holding virtual assets on their behalf or using funds from customer deposits. Their primary role is to offer routine banking services to recognized crypto businesses.
Additionally, banks must facilitate the opening of separate currency accounts, known as Client Money Accounts. These accounts are designated for processing approved transactions and cannot intermingle with other client assets.
Each lending institution must also perform thorough due diligence on any virtual asset firm they partner with, adjust their risk assessments for cryptocurrency exposure, and report any unusual activity to the Financial Monitoring Unit of Pakistan.
All pre-existing foreign exchange regulations and guidelines from the central bank still apply, ensuring that working with licensed crypto companies does not exempt banks from these responsibilities.
Pakistan is taking significant steps to integrate its virtual asset framework into the economy.
The adoption of the 2026 Virtual Assets Act has led to BPRD Circular Letter No. 10 of the same year, allowing licensed entities a formal avenue to banking… pic.twitter.com/cuUhwSiCfS
— Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) April 14, 2026
Turning the Page on Eight Years of Restrictions
Since the outright ban on virtual currency transactions in 2018, Pakistan’s crypto companies faced significant challenges in accessing necessary banking services.
The introduction of the Virtual Assets Act in March is a turning point, and the subsequent circular from the central bank enforced the new regulatory framework.
In advance of these changes, government officials held discussions with major exchanges such as Binance and HTX in late 2025, setting the stage for regulated platforms to enter the Pakistani market.
Furthermore, Pakistan’s exploration of blockchain-based financial systems included partnerships with organizations like World Liberty Financial, focusing on using stablecoins to streamline cross-border transactions.
A Defined Framework for Digital Assets
PVARA plays a crucial role in overseeing this new landscape. Any virtual asset service provider aiming for banking access must undergo licensing through this authority. Banks are obliged to perform continuous assessments of these firms, beyond initial approval.
Recent reports suggest that, despite previous restrictions, crypto transactions in Pakistan have been on the rise. This growth is largely driven by a substantial expatriate community, sending remittances back home and showing an increasing interest in stablecoins for safer transactions.
This circular from the central bank signifies a landmark achievement for licensed crypto companies in Pakistan as they gain a legal pathway to essential banking services. It remains to be seen whether banks will quickly adapt to serve this new demographic or proceed with caution.
Featured image from ProPakistani, chart source TradingView
