Banks in Pakistan can now open accounts for licensees Cryptocurrency Companies – a move that ends restrictions imposed since 2018.
Strict rules come with new access
The State Bank of Pakistan issued a circular on April 14 explains exactly how this access works. Regulated banks are Allowed To serve entities licensed by the Pakistan Virtual Assets Regulatory Authority, otherwise known as break – The body responsible for licensing and supervising virtual assets activity in the country. But the rules are strict.
Banks cannot invest, trade or hold virtual assets using their own funds or customer deposits. Their role is limited to providing standard banking services to licensed companies.
Separate rupee-denominated accounts – called client money accounts – must be opened specifically for settlement of approved transactions. VASP Funds cannot be mixed with client assets under any circumstances.
Banks are also required to conduct full due diligence on every virtual asset company they work with, update their risk profiling systems to take into account cryptocurrency-related exposure, and report any suspicious activity to Pakistan’s Financial Surveillance Unit.
Foreign exchange rules and all other central bank regulations remain in effect. Working with a licensed crypto company does not exempt the bank from those obligations.
Pakistan has taken an important step towards formalizing the virtual assets ecosystem.
Following the enactment of the Virtual Assets Act, 2026, the State Bank of Pakistan 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 are now behind them
Pakistan completely banned virtual currency transactions in 2018. For eight years, cryptocurrency companies had no way to access basic banking services in the country.
That changed when Pakistan passed the Virtual Assets Act 2026 in March – and the central bank’s April 14 circular put the new framework into effect.
The government had been laying the groundwork for several months. Officials held talks with major exchanges, including Binance and HTX, in December 2025 as part of efforts to bring regulated trading platforms to the country.
Separately, Pakistan has explored blockchain-based financial infrastructure through discussions with affiliates of World Liberty Financial, with a focus on using stablecoins for cross-border payments.
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A regulated path forward for digital assets
PVARA is now at the center of this new order. Any virtual asset service provider wishing to access banking services must first obtain a license through the authority. Banks, in turn, are responsible for examining these companies on an ongoing basis – not just at the point of enrollment.
Reports Cryptocurrency activity in Pakistan is growing despite the long-standing ban, partly due to a large population abroad who regularly send money home, she notes. The country’s interest in stablecoins for remittances reflects this reality.
The central bank circular marks the first time that licensed cryptocurrency companies will have a formal and legal route to banking services in Pakistan. It remains to be seen whether banks will move quickly to serve this new customer base – or adopt a cautious wait-and-see approach.
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