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Pakistan’s primary financial institution has officially rescinded its long-standing prohibition on banking services for cryptocurrency businesses, permitting authorized banks to establish accounts for licensed virtual asset service providers (VASPs) under a newly established regulatory framework.
This determination, publicized in a directive from the State Bank of Pakistan and reported by Reuters, follows the implementation of the Virtual Assets Act of 2026. It signifies the nation’s initial structured initiative to incorporate digital asset enterprises into its official financial ecosystem.
“This is a crucial initial step towards integrating virtual assets into Pakistan’s formal financial infrastructure,” stated Bilal bin Saqib, chairman of the Pakistan Virtual Assets Regulatory Authority, in an official announcement.
Under the revised regulations, banks are authorized to offer essential financial services to crypto companies, provided they first confirm that these firms hold a license from PVARA. Rigorous protective measures have been instituted to reduce financial hazards and ensure adherence to anti-money laundering (AML) and counter-terrorism financing guidelines.
JUST IN: 🇵🇰 Pakistan's central bank overturns ban and allows banks to open accounts for licensed Bitcoin & crypto service providers, Reuters reports 🚀 pic.twitter.com/nQ3jV9lQgr
— Bitcoin Magazine (@BitcoinMagazine) April 15, 2026
Financial institutions must conduct thorough due diligence, maintain up-to-date risk assessments for their VASP clientele, and report any questionable transactions to regulatory bodies.
Additionally, they are obligated to ensure that client funds are maintained in separate, non-interest-bearing accounts denominated in Pakistani rupees. The commingling of client funds with company assets is strictly forbidden.
Pakistani banks still can’t invest in bitcoin or crypto
Nevertheless, the central bank has imposed a clear restriction on direct involvement with digital assets. Banks are expressly prohibited from making investments in, trading, or holding cryptocurrencies, whether using their own capital or client funds. Their function is confined to facilitating payment channels and the safekeeping of fiat currency associated with authorized crypto activities.
This development represents a significant policy shift from Pakistan’s 2018 stance, which effectively severed crypto firms’ access to the banking system and impeded industry expansion. With the new framework now in effect, authorities are aiming to establish the country as a regulated center for digital asset innovation.
Pakistan has already undertaken measures to draw in international crypto entities. Officials entered into a memorandum of understanding with Binance in December to explore tokenization projects potentially valued at up to $2 billion, and have provided initial regulatory approvals to both Binance and HTX.
Concurrently, the nation has investigated blockchain-based financial infrastructure through discussions with an affiliate of World Liberty Financial, including the possibility of using stablecoins for international transactions.
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Micah ZimmermanMicah first discovered Bitcoin in 2018 but remained a skeptic on the sidelines for too long. Since 2021, he has covered crypto and business and now works as a news reporter for Bitcoin Magazine, based in North Carolina.RELATED ARTICLES NEWS
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Original article : bitcoinmagazine.com