Pakistan has formally allowed banks to serve licensed virtual asset service providers under new rules issued by the State Bank on April 14, 2026. The decision overturns the 2018 ban and follows the Virtual Assets Act of March 2026, which established the PVARA regulator. Banks must conduct strict due diligence, verify licenses, monitor transactions, and report suspicious activity, without engaging in direct crypto trading. The move aims to improve transparency, reduce illicit flows, and align Pakistan with global crypto regulation standards.
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