Pakistan's SBP Finally Lets Crypto Firms Open Bank Accounts—Still Can’t Withdraw Cash, But We’ll Take It

The State Bank of Pakistan (SBP) has done the unthinkable: it’s letting licensed crypto firms dip their toes into the banking system. In a move that feels less “big bang” and more “cautious toe in the pool,” the central bank has officially greenlit banking access for regulated digital asset players—though don’t expect any Lambos just yet, since actual cash withdrawals are still off the table. This is Pakistan, not a degen paradise (yet).

The new policy quietly slays the zombie of the 2018 crypto ban, which treated all things blockchain like they were carrying the plague. Now, with the Virtual Assets Act 2026 law of the land and the Pakistan Virtual Asset Regulatory Authority (PVARA) sitting in the regulator’s chair like a stern but slightly curious uncle, the SBP is finally okay with banks giving crypto firms a seat at the table—provided they wear a tie (or at least submit the right paperwork).

To get banking access, crypto companies must jump through the usual bureaucratic hoops—filing forms, submitting documents, and probably printing at least three copies in triplicate. Banks, meanwhile, are required to verify that each firm’s PVARA license isn’t just a PDF someone Photoshopped after a late-night Whitepaper Reddit binge. Once confirmed, banks can proceed, but they’d better keep those license records on file—auditors love a good paper trail, especially when they’re looking for someone to scold.

For licensed VASPs—yes, that’s “Virtual Asset Service Providers,” not a new strain of cryptocurrency flu—banks can now open dedicated 'Client Money Accounts' (CMAs). These accounts are basically the financial equivalent of a quarantine zone: they hold client funds separately from the VASP’s own money, ensuring that if the company goes full FTX on its balance sheet, customer cash isn’t part of the fireworks show.

And speaking of CMAs, they come with a laundry list of restrictions that read like a parental consent form. Only Pakistani rupees allowed—no stablecoins, no BTC, not even a wink at USDT. The accounts earn zero interest (because where’s the fun in that?), only process approved transactions, and absolutely, positively cannot be used to withdraw physical cash. Want to buy a scooter with your crypto profits? Too bad—sell first, bank second, then ride (illegally) into the sunset.

Also, these accounts can’t be used as collateral. So no leveraging your CMA to short the rupee or bet on the next election. Banks must also run full customer due diligence before and during their relationship with VASPs, because money laundering is still a thing, and Pakistan’s commitment to AML Act 2010 compliance means someone somewhere is filling out a suspicious transaction report right now—probably about a guy who moved 500K PKR in one go and listed his occupation as “NFT flipper.”

Firms holding a No Objection Certificate (NOC) from PVARA can now access limited banking—basically enough to finish the licensing process without having to courier cash in a briefcase. It’s like getting a learner’s permit: you can drive, but only under supervision and never after midnight. Once fully licensed, they unlock full transactional capabilities, which, in this context, means “can do everything except touch physical money.”

The SBP’s announcement dropped at the same time Pakistan was busy mediating U.S.-Iran talks—because apparently, while defusing geopolitical tension, someone in the central bank quietly whispered, “Also, crypto can have bank accounts now.” Whether this is a sign of a broader reform wave or just regulatory whiplash remains to be seen.