Pakistan lifts crypto bank ban
Pakistan reportedly moved to lift its ban on banks servicing crypto‑related businesses, a significant policy shift for regional crypto access. (x.com) Social commentary around the announcement coupled it with other institutional crypto moves this week. (x.com)
Pakistan’s central bank has reopened the banking system to licensed crypto firms, replacing an April 2018 prohibition with new rules that took effect on April 14, 2026. (sbp.org.pk) The State Bank of Pakistan said banks and other regulated entities may open accounts for virtual asset service providers licensed by the Pakistan Virtual Assets Regulatory Authority, or PVARA, and must verify each license with the regulator. (sbp.org.pk) The new circular also allows separate client money accounts for authorized transactions, but those accounts must be denominated in Pakistani rupees, cannot accept cash deposits or withdrawals, and cannot be used as collateral for credit. (sbp.org.pk) Pakistan’s 2018 order had barred banks, development finance institutions, microfinance banks, payment operators and payment service providers from dealing in virtual currencies or facilitating customers’ transactions in them. (sbp.org.pk) The April 14 change follows Pakistan’s Virtual Assets Act, 2026, which created PVARA as the statutory authority for licensing, regulation, supervision and oversight of virtual-asset activity. (sbp.org.pk; pvara.gov.pk) PVARA says exchanges, wallet operators, token issuers, custodians and investment platforms must obtain formal approval to operate, and that it is currently accepting no-objection certificate applications as the first step toward full licensing. (pvara.gov.pk; pvara.gov.pk) The law and the bank circular both frame the shift around anti-money-laundering and counter-terror-financing controls, with banks required to perform enhanced due diligence, risk-rate crypto firms and report suspicious transactions to Pakistan’s Financial Monitoring Unit. (sbp.org.pk; pvara.gov.pk) Reuters reported on April 15 that the move overrides the 2018 ban and opens formal banking access to licensed providers, while leaving banks under a controlled compliance regime rather than allowing them to trade crypto directly. (msn.com; coindesk.com) That leaves Pakistan with a narrower change than a full crypto legalization: licensed firms can get bank access, but the system is being opened through regulated onboarding, segregated accounts and transaction monitoring, not a free pass for the sector. (sbp.org.pk; pvara.gov.pk)
