Pakistan Lifts Ban on Banks Serving Crypto Companies

Pakistan's central bank has lifted a ban on banks serving crypto companies. The State Bank of Pakistan issued a circular on April 14, authorizing regulated financial institutions to open accounts for licensed Virtual Asset Service Providers (VASPs).

The move follows the passage of the Virtual Assets Act 2026 in March, which created a formal legal structure for digital assets in the country. The new rules require banks to provide services only to entities licensed by the Pakistan Virtual Assets Regulatory Authority (PVARA).

Regulated institutions must conduct full due diligence on each VASP before opening an account and are prohibited from trading or holding virtual assets using their own funds or customer deposits.