Pakistan Lifts Crypto Banking Ban After Eight-Year Restriction Ends

State Bank of Pakistan has lifted the eight-year-old ban on crypto banking, marking a major policy shift. The decision allows limited banking access for licensed crypto companies. Officials say this move aims to regulate rather than fully adopt cryptocurrency trading.

Moreover, Minister of State for Blockchain and Crypto Bilal Bin Saqib confirmed the development. He said Pakistani banks can now open accounts for licensed crypto firms. However, he clarified that this access comes under strict regulatory conditions.

In addition, he explained that previously, crypto companies had no formal link with the banking sector. Now, the new framework allows controlled interaction between banks and approved crypto businesses. This change introduces a regulated pathway for financial operations.

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Furthermore, he stressed that banks themselves cannot directly engage in cryptocurrency trading. He said banks are not allowed to buy or hold crypto assets using their own funds or customer deposits. This rule aims to reduce financial risks and maintain stability.

Finally, the policy marks a significant shift in Pakistan’s digital finance approach. Pakistan lifts crypto banking ban after eight-year restriction ends, opening a regulated but cautious environment. Authorities say the system will evolve carefully while ensuring compliance and financial security.