SBP allows banks to open accounts for licensed virtual asset service providers

The State Bank of Pakistan (SBP) has given banks the green light to open accounts for licensed virtual asset service providers, effectively reversing a restriction imposed in 2018, according to a central bank circular and a statement from the country’s virtual asset regulator.

The move signals Pakistan’s push to bring digital asset businesses into the formal financial system.

The decision comes after the passage of the Virtual Assets Act, 2026, marking the country’s first structured effort to integrate crypto-related firms into the banking sector under strict anti-money laundering and compliance requirements.

Tweet by Pakistan Virtual Assets Regulatory Authority

Under the new framework, banks are required to verify licences issued by PVARA before onboarding any firm. They must also maintain separate, non-interest-bearing accounts in rupees for clients.

The SBP said banks will continue to be responsible for due diligence, risk assessment and reporting suspicious transactions. It also made clear that lenders are not allowed to invest in or hold virtual assets using either their own funds or those of customers.

Pakistan has already taken steps to attract global crypto firms. It signed a memorandum of understanding with Binance in December to explore tokenising assets worth up to $2 billion, and has granted initial approvals to Binance and HTX to begin the licensing process.

In January, the country also entered into an agreement with an affiliate of World Liberty Financial to explore cross-border payments using stablecoins.

Tweet by Waqar Zaka