In a bid to bring crypto currency into the mainstream banking channels, the State Bank of Pakistan (SBP) has permitted banks to open accounts for licensed virtual asset service providers, effectively reversing a 2018 restriction.
The decision, outlined in a central bank circular and supported by the Pakistan Virtual Assets Regulatory Authority (PVARA), signals Pakistan’s intent to integrate digital assets into its regulated financial system.
The move follows the passage of the Virtual Assets Act, 2026, marking the country’s first structured effort to bring crypto-related businesses into the banking sector under strict anti-money-laundering and compliance frameworks.
PVARA Chairman Bilal bin Saqib described the development as a “foundational step” toward formalizing virtual assets in Pakistan.
Under the new rules, banks must verify licenses issued by PVARA before onboarding firms and maintain segregated, non-interest-bearing rupee accounts.
They will also remain responsible for due diligence, risk assessments, and reporting suspicious transactions.
However, banks are prohibited from investing in or holding virtual assets using their own or customers’ funds.
