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The Central Bank of Pakistan has officially allowed banks to provide banking services to licensed digital currency companies, ending a roughly eight-year ban in a major shift in its policy on digital currency.
According to the new notification, financial institutions can trade with companies licensed by the Pakistan Virtual Assets Regulatory Authority, which was newly established to regulate the industry after the passage of the Digital Assets Act 2026.
Despite this openness, the central bank has imposed strict restrictions on the role of banks, as they are prohibited from investing in, trading or holding digital currencies and their role is limited to providing banking services such as opening accounts and facilitating transactions.
Licensed companies are also obliged to keep client funds separate from operating funds and use designated local currency accounts, in addition to banks committing to strict audit procedures and continuous monitoring of activities while reporting any suspicious transactions in accordance with anti-money laundering laws.
The move is in line with a broader trend towards adopting a comprehensive regulatory framework for digital assets, as Pakistan seeks to attract global trading platforms and develop blockchain-based financial structures after years of tight restrictions.
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