Only firms that hold a valid PVARA license qualify for access to banking services under the new rules.
Pakistan Crypto News
Pakistan's central bank has lifted a ban that prevented banks from 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 ends restrictions that had been in place since 2018.
The circular specifies that banks may provide services only to entities licensed by the Pakistan Virtual Assets Regulatory Authority, known as PVARA. PVARA is the statutory body responsible for licensing, regulating, and overseeing virtual asset activity in the country. Only firms that hold a valid PVARA license qualify for access to banking services under the new rules.
The policy change follows the passage of the Virtual Assets Act 2026 in March. That legislation created a formal legal structure for digital assets in Pakistan for the first time. The April 14 circular translates that law into operational rules for the banking sector.
Pakistani authorities have been engaging with the crypto industry more actively in recent months. In December 2025, officials held discussions with major exchanges including Binance and HTX as part of efforts to attract regulated trading platforms to the country. Separately, Pakistan explored the use of stablecoins for cross-border payments through discussions with affiliates of World Liberty Financial.
The new framework places strict limits on what banks can do with crypto-related accounts. Regulated institutions are prohibited from trading, investing, or holding virtual assets using their own funds or customer deposits. Their role is limited to providing banking infrastructure to licensed firms.
Banks must open dedicated accounts denominated in Pakistani rupees for each licensed VASP they serve. These accounts, designated as Client Money Accounts, must be kept strictly separate from other VASP accounts. Commingling of VASP funds with client assets is prohibited.
Financial institutions must also conduct full due diligence on each VASP before opening an account. Banks are required to update their customer risk profiling models to reflect VASP-specific risks. They must monitor VASP relationships on an ongoing basis and report any suspicious transactions to Pakistan's Financial Monitoring Unit.
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