The State Bank of Pakistan (SBP) has taken a major step by removing its 2018 ban on virtual currencies. Under a new regulated system, licensed crypto companies are now allowed to access banking services.
This move is part of the newly introduced Virtual Assets Act 2026, which aims to bring more transparency and control to the crypto sector in Pakistan.
According to the new rules, banks are now permitted to work with Virtual Asset Service Providers (VASPs) that are officially licensed by the Pakistan Virtual Asset Regulatory Authority (PVARA).
This means that only approved and regulated crypto businesses can connect with banks and offer services to customers.
Banks can also open special accounts called segregated Client Money Accounts for these licensed companies. These accounts will help keep customer funds separate and secure.
However, banks must follow strict compliance procedures, including proper background checks and adherence to Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations.
Despite this positive step, some restrictions are still in place. Cash transactions related to crypto remain limited, and banks are required to carefully monitor all activities.
Any suspicious transactions must be reported immediately to ensure safety and prevent illegal activities.