Pakistan has formally lifted the banking blockade that kept crypto firms outside the financial system for eight years. On April 14, the State Bank of Pakistan issued BPRD Circular Letter No. 10 of 2026, reversing a 2018 directive that barred banks from dealing with crypto businesses. For firms licensed by PVARA, bank access is now possible for the first time.
The shift follows the passage of the Virtual Assets Act 2026 and the creation of PVARA, the Pakistan Virtual Asset Regulatory Authority. That gives the country a dedicated regulator and a defined legal route for the sector, replacing a policy that had kept banks out while crypto activity continued elsewhere.
Bank accounts are allowed, but only under narrow conditions
The new rules let banks open client money accounts for PVARA-licensed firms, yet the terms are tight. Accounts must be denominated in Pakistani rupees, cannot pay interest, cannot accept cash deposits, and must keep client funds fully segregated from company funds.
Those funds also cannot be used as collateral for loans. Banks remain barred from investing in, trading, or holding crypto with either their own money or customer deposits. Any suspicious activity must be reported under anti-money laundering law. Access has opened, but the perimeter is clearly defined.
Crypto use continued even while banks were shut out
Pakistan’s earlier policy did not eliminate crypto adoption; it blocked banks from participating in it. The source says the country processed $25 billion in crypto transactions in 2025, with activity moving through P2P markets, offshore exchanges, and informal channels rather than the domestic banking system.
That scale sits alongside 27 million crypto users and 100 million unbanked adults. The article also points to a major remittance corridor tied to overseas workers and notes that the Pakistani rupee lost 28% of its value in 2023. In that setting, crypto was used for practical reasons as much as speculative ones. Regulation is now catching up with usage that already existed.
Pakistan’s framework looks clearer than India’s in 2026
According to the article’s reference to Chainalysis 2025, India ranks first globally in crypto adoption, ahead of the United States and Pakistan. India taxes crypto gains at a flat 30% and applies a 1% tax deducted at source on every transaction, but it still does not have a comprehensive regulatory framework in place.
Pakistan, by contrast, now has a dedicated regulator, a formal licensing regime, and an explicit legal structure after years of keeping crypto firms away from banks. The country has moved from trying to isolate the sector to supervising it under written rules.