Pakistan's 7-Year Crypto Time-Out Finally Ends: Banks Get a Green Light (Just Don't Get Too Excited)

Pakistan's central bank has officially lifted its blanket ban on crypto services, finally allowing banks and financial institutions to serve licensed crypto firms under a new regulatory framework. Apparently, seven years was just enough time for everyone to practice their surprised faces.

Under the new rules, banks can open accounts for virtual asset service providers approved by the Pakistan Virtual Asset Regulatory Authority (PVARA). However, they're still barred from investing, trading, or holding crypto assets using their own funds or customer deposits—because apparently, some fences are just too fun not to install. The 2026 Virtual Assets Act established PVARA to license, regulate, and supervise the sector, and banks must ensure strict compliance with anti-money laundering (AML), know-your-customer (KYC), and counter-terrorism financing regulations. The central bank's rules also set out detailed conditions for onboarding crypto firms, including mandatory verification of licenses, enhanced due diligence, and ongoing supervision of all transactions. Basically, they're giving banks permission to date crypto, but they better not get married. Pakistan is already one of the world's largest retail crypto markets, ranking third globally in retail activity. Roughly 40 million people—about 17% of the population—are involved in crypto trading. That's a lot of people who definitely didn't ask permission from their banks before buying the dip. The country is pushing hard into digital assets, with