Pakistan has taken another step toward bringing crypto firms into the formal banking system. The State Bank of Pakistan (SBP) now allows regulated institutions to open and maintain bank accounts for crypto companies licensed by the Pakistan Virtual Assets Regulatory Authority (PVARA).
PVARA publicly highlighted the move in a Tuesday post on X. This is a notable shift from the SBP’s 2018 stance, when it told banks and other regulated financial institutions not to support virtual currency-related activity.
In the post, the PVARA noted that SBP had issued BPRD Circular Letter No. 10 of 2026.
The letter allows regulated institutions to open bank accounts for licensed virtual asset service providers (VASPs) and their customers, provided they meet compliance and anti-money laundering requirements.
The move is significant because crypto firms need basic banking access to run their operations lawfully and smoothly.
Without access to bank accounts, even licensed businesses find it hard to pay employees, cover local expenses, or connect users with regulated fiat services.
PVARA was established under Pakistan’s Virtual Assets Act to license and regulate VASPs in the region.
The framework concentrates on anti-money laundering and counter-terror financing checks. For licensed firms, this includes ongoing monitoring, reporting obligations, sanctions screening, and customer due diligence.
Banks can serve licensed firms, but limits stay in place
The new approach does not mean Pakistani banks are free to jump into crypto trading. According to the circular, access is limited and heavily controlled.
Banks can open accounts for firms approved by PVARA, but they still cannot trade, hold, or invest in cryptocurrencies with their own funds or with customer deposits.
The system is designed to give licensed firms banking access without turning banks themselves into crypto market participants.
The reported account structure is also narrow in scope. Client money accounts tied to virtual asset services must remain separate from company funds. The accounts are described as rupee-denominated, non-interest-bearing, and restricted from handling cash deposits and withdrawals.
Funds in those accounts also cannot be used as collateral for lending. These restrictions indicate that Pakistan is not fully opening up. It is creating a careful path for crypto businesses to join the regulated economy under strict oversight.
“This development reflects continued coordination between policymakers, regulators, and industry stakeholders as Pakistan advances toward a fully regulated digital asset market,” PVARA stated.
A clear break from the 2018 restriction
Back in April 2018, the central bank said virtual currencies were not legal tender in Pakistan. It also made clear that no person or company had been authorized to issue, sell, buy, exchange, or invest in them.
At the time, SBP told banks, development finance institutions, microfinance banks, payment system operators, and payment service providers to stay away from virtual currency activity altogether.
The new banking access removes a big problem for crypto firms in Pakistan. Licensed companies can now handle payments, salaries, and daily business costs through proper banking channels.
The move could also make it easier to shift money between crypto and fiat under a more stable and regulated system. For users, this may lead to safer and more transparent access to digital asset services through licensed platforms.
Binance, HTX get early NOCs but full approval is still pending
PVARA has already given preliminary No Objection Certificates, or NOCs, to major exchanges such as Binance and HTX.
These early approvals let the companies begin registration with Pakistan’s Financial Monitoring Unit for anti-money laundering compliance.
Still, this is not full approval, and Binance and HTX must complete Pakistan’s full local licensing process. Until then, neither platform is allowed to serve users in the country.
The Virtual Assets Act 2026 sets tough penalties for unlicensed crypto activity. Firms that operate without approval can be fined up to PKR 50 million, or about $179,000, and their operators could face prison terms of up to five years.
Authorities have also set separate penalties for promoting or offering virtual asset services without a license. In such cases, fines can reach PKR 25 million, or roughly $89,000, along with up to three years in jail.
The law also lets PVARA establish special virtual asset zones to attract blockchain and tech companies. While no zones have been announced yet, this step indicates Pakistan’s desire to create a regulated and innovation-friendly crypto market.