Pakistan's central bank has allowed banks to open and maintain accounts for licensed cryptocurrency operators. On April 15 local time, blockchain media outlet Cryptopolitan reported the move effectively scrapped a policy in place since 2018 that barred crypto-related financial transactions.

Under the new guidelines, regulated banks in Pakistan can open accounts for virtual asset service providers that have received a formal licence from the Pakistan Virtual Asset Regulatory Authority (PVARA) or hold a no-objection certificate (NOC) from the authority. Banks must directly verify a provider's PVARA licence before starting transactions.

In return for allowing access to the banking system, the central bank imposed requirements for customer fund segregation and anti-money laundering rules. Banks must open separate accounts to hold customer funds as non-interest accounts denominated in Pakistani rupees (PKR), and those accounts can be used only to settle permitted VASP transactions. Cash deposits and withdrawals are not allowed, and mixing operator funds with customer funds is banned. Using the funds as collateral is also not permitted.

Banks and other regulated entities are also barred from directly investing in, trading or holding cryptocurrencies using their own funds or customer deposits. Providers that have not yet obtained a formal licence but have secured an NOC can open restricted-purpose accounts. Actual transaction services can be offered only after PVARA issues a formal licence.

Anti-money laundering (AML) and counter-terrorism financing (CFT) obligations have also been strengthened. VASPs and users are subject to the new guidelines and the 2010 AML law. Banks must conduct full due diligence on each provider and revise customer risk assessment systems to reflect crypto-related risks. Ongoing monitoring is required even after a business relationship begins.

The changes became possible after enactment of the Virtual Assets Act 2026. The law established PVARA as the dedicated regulator for cryptocurrency activities. In July 2025, Pakistan President Arif Alvi (아리프 알비) launched PVARA first as an interim body, and NOCs were later issued to Binance and HTX. Parliament passed the Virtual Assets Act in March, converting PVARA into a permanent statutory body.

Behind the shift is Pakistan's fast-growing crypto market outside the formal system. The central bank's 2018 guidance left an active informal crypto market outside the formal financial system. In Chainalysis' "2025 Global Crypto Adoption Index", Pakistan ranked third in the world, and Chainalysis said the ranking reflects demand for remittances, access to dollars through stablecoins and the expansion of mobile-centred financial services.

Pakistan is also widening the scope for using cryptocurrencies and digital assets alongside institutional reforms. The government announced a plan to allocate surplus electricity to bitcoin mining and artificial intelligence (AI) data centres, and it is considering tokenising government assets worth up to $2 billion. A pilot using dollar-pegged stablecoins for remittances is under way, and preparations for a central bank digital currency (CBDC) pilot are proceeding in parallel. The new system also includes a Sharia advisory committee, presented as one of the early cases integrating Islamic finance principles into crypto regulation.

A key issue is how quickly PVARA moves from issuing NOCs to granting formal licences. PVARA said the central bank guidance is a "sign of a shift from a previously restrictive environment to a structured regulatory framework". It also said the move reflects continued coordination among policymakers, regulators and industry stakeholders.

The move is close to a turning point in bringing Pakistan's informal crypto market into the formal financial system. The core point is that it paired permission for bank accounts with customer fund segregation and application of AML rules, putting a controllable transaction structure ahead of market expansion.

Pakistan has taken an important step toward formalising its virtual asset ecosystem. Following the enactment of the Virtual Assets Act, 2026, the State Bank of Pakistan has issued BPRD Circular Letter No. 10 of 2026, enabling regulated entities to open and maintain bank accounts… pic.twitter.com/cuUhwSiCfS