Pakistan is the third largest crypto market in the world. For eight years, none of its 27 million users could access a bank account to run a crypto business legally. That has changed.
The State Bank of Pakistan issued BPRD Circular Letter No. 10 of 2026 on April 14, formally reversing a 2018 directive that barred banks from dealing with crypto firms. The move follows the enactment of the Virtual Assets Act 2026 and the establishment of PVARA, the Pakistan Virtual Asset Regulatory Authority, as the country’s dedicated crypto regulator.
The rules are strict. Banks may now open client money accounts for PVARA-licensed firms, but those accounts must be rupee-denominated, pay no interest, accept no cash deposits, and keep client funds completely segregated from company funds.
Funds cannot be used as loan collateral. Banks themselves cannot invest in, trade or hold crypto using their own funds or customer deposits. Suspicious transactions must be reported under AML law.
Pakistan did not ban crypto adoption. It banned banks from participating in it.
The country processed $25 billion in crypto transactions in 2025, running through P2P markets, offshore exchanges and informal channels while the banking system looked the other way. With 100 million unbanked adults, a large overseas worker remittance corridor, and a rupee (PKR) that lost 28% of its value in 2023 alone, crypto served a practical function rather than a speculative one.
The regulation is catching up with a reality that already existed.
India ranks first globally in crypto adoption according to Chainalysis 2025, ahead of the United States and Pakistan. But India imposes a 30% flat tax on crypto gains plus a 1% tax deducted at source on every transaction, with no comprehensive regulatory framework in place.
Pakistan ranked third in the world despite an outright banking ban. It now has a dedicated regulator, a formal licensing process and a defined legal framework. A country that banned crypto banking for eight years has produced clearer crypto regulation than its neighbor, which leads the world in adoption.
Pakistan spent eight years trying to keep banks away from crypto while 27 million citizens used it anyway. The government has now decided to regulate what it could not stop.
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