SBP opens formal banking to licensed virtual asset service providers

ISLAMABAD: The State Bank of Pakistan (SBP) has allowed banks to open accounts for licensed virtual asset service providers, overriding a 2018 ban, a circular from the central bank and a statement by the virtual asset regulator said, as the country moves to integrate digital assets into the regulated financial system.

The move follows the enactment of the Virtual Assets Act, 2026, and marks Pakistan’s first formal step toward bringing crypto-related businesses into the banking system under strict anti-money-laundering and compliance rules.

“This is a foundational step in bringing virtual assets into the formal financial system of Pakistan,“ Bilal bin Saqib, the Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), said in the statement on Wednesday.

Banks must verify licences issued by the newly established PVARA before onboarding firms and maintain segregated, non-interest-bearing client accounts in rupees, the SBP said.

Banks will remain responsible for due diligence, risk profiling and reporting suspicious transactions, the central bank said, adding that lenders cannot invest in or hold virtual assets using their own or customer funds.

Pakistan has already moved to bring in global crypto players, signing a memorandum of understanding with Binance in December to explore tokenising up to $2 billion in assets and granting initial clearances to Binance and HTX to begin licensing.

It also struck a deal with an affiliate of World Liberty Financial in January to explore stablecoin-based, cross-border payments.