SBP Opens Banking Access for Licensed VASPs Amid Digital Asset Integration

The State Bank of Pakistan (SBP) has permitted banks to open accounts for licensed virtual asset service providers, reversing a 2018 ban. This move follows the enactment of the Virtual Assets Act, 2026, marking Pakistan’s first formal step towards integrating crypto-related businesses into the regulated financial system.

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

Previously, for nearly eight years, Pakistan’s virtual asset sector was active but lacked lawful banking infrastructure. The SBP’s decision enables banks to open accounts for PVARA-licensed providers and maintain segregated, non-interest-bearing client accounts in rupees.

Pakistan has taken an important step toward formalizing its virtual asset ecosystem. Following the enactment of the Virtual Assets Act, 2026, the State Bank issued BPRD Circular Letter No. 10 of 2026, allowing regulated entities to open and maintain bank accounts for virtual assets.

Banks will continue to be responsible for due diligence, risk profiling, and reporting suspicious transactions. They cannot invest in or hold virtual assets using their or customer funds.

Pakistan has also signed a memorandum of understanding with Binance to explore tokenizing up to $2 billion in assets and granted initial clearances to Binance and HTX to begin licensing. Additionally, the country struck a deal with an affiliate of World Liberty Financial to explore stablecoin-based cross-border payments.