Pakistan moves to formally integrate regulated virtual asset service providers into the banking system under strict compliance and anti-money laundering controls.
ISLAMABAD: The State Bank of Pakistan (SBP) has allowed licensed virtual asset service providers to open bank accounts, marking a significant reversal of restrictions imposed in 2018 and signaling a regulated pathway for digital assets under the Virtual Assets Act, 2026. The move brings crypto-linked firms into formal banking oversight for the first time framework.
The decision follows the enactment of new legislation establishing Pakistan Virtual Assets Regulatory Authority and sets strict compliance conditions for onboarding crypto-related entities. Banks will be required to verify licences, conduct due diligence, and maintain segregated non-interest-bearing rupee accounts for clients, according to the SBP circular and regulator’s statement. The framework aims to balance innovation with anti-money laundering safeguards across the financial sector system stability.
Officials said the policy marks Pakistan’s first formal step toward integrating digital assets into the regulated financial system while ensuring strong anti-money laundering and risk management controls. Banks will remain responsible for customer risk profiling, transaction monitoring, and reporting suspicious activity, with restrictions preventing them from investing in or holding virtual assets directly. This ensures banking sector exposure remains tightly controlled under supervision framework oversight.
Pakistan has recently increased engagement with global blockchain and crypto platforms, including agreements to explore tokenisation of multi-billion-dollar assets and cross-border payment solutions involving stablecoins. Officials say the latest step reflects broader efforts to modernise financial infrastructure while maintaining regulatory control over emerging digital markets. Recent collaborations include discussions with Binance, HTX, and World Liberty Financial on digital payment and asset innovation frameworks systems.
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