State Bank ends crypto ban on Tuesday with a landmark decision. Pakistan formally legalized virtual assets under the Virtual Assets Act 2026. This marks one of the biggest regulatory shifts in the country’s digital finance history. The central bank now allows licensed crypto companies to open bank accounts. Banks must verify every license before onboarding any client. Customer transactions will sit in rupee-denominated, non-interest-bearing accounts. Cash deposits and withdrawals remain forbidden.

A new regulator called PVARA will oversee everything. The Pakistan Virtual Asset Regulatory Authority handles licensing, supervision, and enforcement. Crypto exchanges, wallet providers, and digital asset platforms can now operate legally. They just need to meet strict compliance conditions. Banks must conduct enhanced due diligence on every customer. They also monitor risk profiles and suspicious transactions closely. Any concerns trigger reporting under Pakistan’s anti-money laundering laws.

The new law comes with important safeguards. Banks cannot invest in virtual assets using their own funds. They also cannot trade or hold crypto using customer deposits. State Bank ends crypto ban for service providers only. This means regulated access, payments, and custody infrastructure are now legal. Banks cannot speculate in crypto assets directly. The central bank wants adoption without reckless risk.

Pakistan previously kept banking channels completely closed to crypto businesses. That harsh stance lasted for years. This new framework signals a major shift toward regulated digital finance. Blockchain-linked services now have a clear legal path forward. Strong compliance controls remain firmly in place. Crypto fans can finally breathe easier. Banks can finally serve them. The rules just changed forever.