The State Bank of Pakistan has lifted an eight-year ban on cryptocurrency operations. Local banks can now open accounts for registered virtual asset service providers (VASPs) and their clients.
Pakistan has taken an important step toward formalising its virtual asset ecosystem.
— Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) April 14, 2026
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
The role of banks is limited to providing necessary services, as emphasized by the central bank. They are still prohibited from investing in, trading, or holding virtual assets using their own funds or client deposits.
Crypto firms will have separate accounts in Pakistani rupees, and banks must keep these accounts isolated from the firms' other accounts. Mixing these assets with client funds is not allowed.
In addition to existing anti-money laundering and counter-terrorism financing regulations, banks must conduct thorough due diligence on each VASP and update their client risk assessment models to account for the unique aspects of crypto structures.
Financial institutions are also required to continuously monitor their relationships with VASPs and report any suspicious activities to Pakistan's financial intelligence unit.
Gradual Easing
Pakistan is gradually moving towards formal regulation of the industry after years of restrictions. In 2022, there were even discussions about banning all cryptocurrencies.
In March 2026, the country passed the Virtual Assets Act. The Pakistan Virtual Assets Regulatory Authority (PVARA), established in July 2025, is now responsible for the local crypto market. This body issues licenses, sets anti-money laundering rules, and ensures compliance.
The Virtual Assets Act, 2026 has been passed by Parliament, marking a major step toward establishing a comprehensive regulatory framework for Pakistan’s rapidly growing digital financial sector.
— Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) March 6, 2026
The law establishes the Pakistan Virtual Assets Regulatory Authority (PVARA), which…
Previously, Pakistan invited leading global crypto companies to apply for participation in the country's emerging digital economy and signed a memorandum with SC Financial Technologies, affiliated with World Liberty Financial—a DeFi platform linked to the sons of former U.S. President Donald Trump.
This collaboration aims to explore the use of the USD1 stablecoin for digital payments, including cross-border transfers.
It is worth noting that in 2025, Pakistani authorities allocated 2 GW of electricity for Bitcoin mining and AI centers.