Pakistan Ditches Crypto Ban, Opens Banking Doors for Licensed Exchanges

Pakistan has lifted its seven-year ban on serving cryptocurrency businesses, allowing financial institutions to open accounts for virtual asset firms that hold active authorization from the Pakistan Virtual Assets Regulatory Authority.

The move brings into effect the country's Virtual Assets Act 2026, which was passed in March 2026. The act established a legal framework for digital currencies and facilitated discussions between government officials and major exchanges, including Binance and HTX, in December 2025.

Banks are restricted to providing account services only, with explicit prohibitions against purchasing, selling, or holding digital tokens using bank reserves or client deposits. Accounts for crypto businesses must be denominated in Pakistani rupees and maintained separately from firms' operational capital.