Pakistan Banks Can Now Open Accounts for Licensed Crypto Firms

The State Bank of Pakistan has authorized regulated banks to open Pakistani rupee client accounts for virtual asset service providers that hold full licenses or no-objection certificates from the Pakistan Virtual Assets Regulatory Authority. The central bank revoked the 2018 circular that had barred banking relationships with crypto firms and instructed banks to verify a VASP’s PVARA authorization before onboarding.

Under the circular, banks must open segregated client money accounts in PKR. Those accounts must be non-remunerative and used only to settle authorized VASP transactions. Cash deposits and withdrawals are not permitted from those accounts. VASP funds must remain separate from client funds and may not be pledged as collateral. The circular also prohibits banks from investing in, trading, or holding virtual assets using their own funds or customer deposits.

Banks may open limited-purpose accounts for firms holding NOCs while they complete the licensing process. Full transactional services for customers may be provided only after a VASP receives a full PVARA license.

Regulated banks are required to carry out full due diligence on any VASP, update customer risk-profiling models to incorporate virtual-asset risks, and monitor VASP relationships on an ongoing basis. Anti-money laundering and counter-terrorist financing obligations remain in force under Pakistan’s Anti-Money Laundering Act of 2010, and the circular stresses strict compliance requirements for VASPs and their customers.

PVARA began operating in a temporary capacity in July 2025 and issued NOCs to several exchanges. Parliament converted PVARA into a permanent statutory body when it passed the Virtual Assets Act, 2026, in March. On its X account, PVARA wrote that the central bank circular moves the sector from a restrictive environment to a regulated framework and reflects coordination between policymakers, regulators and industry participants.

Pakistan is estimated to have 30–40 million cryptocurrency users and was ranked third in a 2025 global crypto adoption index. Factors cited for high adoption include use in remittances, access to dollars via stablecoins and mobile-first financial services.

The government has outlined broader virtual-asset plans, including allocating surplus electricity for Bitcoin mining and AI data centers, exploring tokenization of up to $2 billion in government assets, testing dollar-linked stablecoins for remittances and preparing a pilot for a central bank digital currency. The regulatory framework includes a Shariah Advisory Committee to integrate Islamic finance principles into oversight.

How quickly banks and VASPs put the new arrangements into practice will depend on PVARA’s pace in converting NOCs into full licenses and on banks’ ability to implement the required account structures and compliance controls. The circular sets specific operational and compliance boundaries for banking crypto-related activity in Pakistan’s regulated financial system.