The State Bank of Pakistan (SBP) has allowed banks to open accounts for licensed virtual asset service ​providers, overriding a 2018 ban, as the country moves to integrate digital assets into the regulated financial system.

The ​move followed the enactment of the Virtual Assets Act, ​2026, and marks Pakistan’s first formal step toward bringing ⁠crypto-related businesses into the banking system under strict anti-money-laundering ​and compliance rules.

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

Banks must verify licences issued by the newly established ​PVARA before onboarding firms and maintain segregated, non-interest-bearing ‌client ⁠accounts in rupees, the SBP said.

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Banks will remain responsible for due diligence, risk profiling and reporting suspicious transactions, the central bank said, adding that lenders cannot invest ​in or hold ​virtual assets using ⁠their own or customer funds.

Pakistan has already moved to bring in global crypto players, signing ​a memorandum of understanding with Binance in December ​to ⁠explore tokenising up to $2 billion in assets and granting initial clearances to Binance and HTX to begin licensing.

It also struck a ⁠deal ​with an affiliate of World Liberty ​Financial in January to explore stablecoin-based, cross-border payments.