Pakistan’s central bank notified all banks and financial institutions in the country that the ban on providing crypto services has been lifted.

However, according to the new state bank rules, banks are banned from investing, trading or holding crypto assets using their own funds or customer deposits.

The State Bank of Pakistan’s move follows the recent enactment of the 2026 Virtual Assets Act, which establishes Pakistan’s Virtual Asset Regulatory Authority (PVARA to license, regulate and supervise the sector.

The central bank replaced its 2018 ban on crypto with new rules that permit regulated banks and other financial institutions to open accounts for crypto firms approved under PVARA.

Under the new state bank framework, banks can…