Pakistan has made a pivotal decision to allow licensed cryptocurrency companies access to banking services. This paradigm shift was announced by the State Bank of Pakistan, which published a new directive permitting regulated banks to establish accounts for virtual asset service providers (VASPs) under a fresh legal framework.
How Does the New Framework Impact Crypto Access?
This development follows the implementation of the Virtual Assets Act 2026, which introduces an organized approach to incorporating digital asset businesses into Pakistan’s official financial ecosystem. Only those companies that have obtained a license from the Pakistan Virtual Assets Regulatory Authority (PVARA) qualify for these financial services.
Bilal bin Saqib, who heads PVARA, highlighted the significance of this change as a foundational step toward aligning the nation’s financial sector with international trends. The framework aims to provide official oversight and authenticity for cryptocurrency activities that were earlier sidelined from the mainstream financial avenues.
What Measures Address Financial Risks?
Under the new regulations, banks in Pakistan are compelled to perform comprehensive due diligence on VASP clients, update risk profiles consistently, and promptly inform authorities of suspicious activities. Specifically, client funds have to be maintained in separate non-interest-bearing accounts, ensuring clear demarcation from the company’s assets.
The responsibility remains on banks to continuously monitor for illicit transactions in line with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. These measures tackle long-standing concerns regarding the misuse of cryptocurrencies for unlawful activities, aligning with both domestic and global compliance requirements.
Though banks can now facilitate banking services related to licensed crypto operations, they are explicitly banned from direct investments, trading, or holding digital assets. Their role is confined to ensuring the security of fiat deposits linked to these crypto accounts.
The lifting of the 2018 ban marks a transformative change, which previously inhibited crypto businesses from accessing local banking, causing operational bottlenecks. Now, the nation’s evolving policies have opened doors to global giants like Binance, expected to fuel growth in Pakistan’s fintech sector.
Government efforts to modernize financial systems also include dialogues with World Liberty Financial affiliates about stablecoin applications for cross-border trade. These advancements not only pave the way for digital finance innovation but also prioritize regulatory clarity and consumer safety.
