SBP opens formal banking to licensed virtual asset service providers

The State Bank of Pakistan (SBP) has allowed banks to open accounts for licensed virtual asset service ​providers, overriding a 2018 ban, as the country moves to integrate digital assets into the regulated financial system. The ​move followed 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 a statement ​on Wednesday. For nearly eight years, Pakistan's virtual asset sector had activity but no lawful banking rails. That changes now. With @StateBank_Pak enabling banks to open accounts for PVARA-licensed providers, Pakistan has moved from restriction to regulation, and from ambiguity to… https://t.co/JXEOl4vJSp — Bilal bin Saqib MBE (@Bilalbinsaqib) April 15, 2026 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. 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 — Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) April 14, 2026 Read More: Saudi Arabia pledges $3b additional support, extends $5b deposit: finance minister 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.