Pakistan has officially ended its eight-year ban on cryptocurrency banking. In a massive shift for the country’s digital economy, traditional banks can now facilitate accounts for licensed digital asset providers. Meanwhile, Binance founder Changpeng Zhao (CZ) strongly hinted that the global exchange is securing an official license to operate within the country after Pakistan finally lifts the crypto ban.
The End of an 8-Year Freeze: Pakistan Lifts Crypto Ban
The State Bank of Pakistan (SBP) issued a circular on April 14 authorizing regulated financial institutions to open accounts for crypto entities. Consequently, this move effectively reverses the outright ban imposed in 2018. This regulatory pivot directly follows the passage of the landmark Virtual Assets Act 2026 last month. Now, traditional lenders can service any entity registered with the Pakistan Virtual Assets Regulatory Authority (PVARA).
The government actually laid the groundwork for this policy shift in late 2025. Officials held high-level consultations with major global exchanges, including Binance and HTX, to attract regulated trading platforms to a local market boasting tens of millions of users.
Binance Signals Official Entry
Social media is currently buzzing with evidence of Binance’s official entry into the Pakistani market. Recently, CZ posted on X asking:
Guess who’s licensed in Pakistan?
This development signals a monumental shift in the national crypto landscape.
Guess who's licensed in Pakistan? https://t.co/1PRfhqtsqe
— CZ 🔶 BNB (@cz_binance) April 16, 2026
Strict New Rules for Banks
Despite lifting the ban, the SBP has placed strict limitations on traditional financial institutions. Specifically, banks cannot use their own capital or customer deposits to trade, hold, or invest in virtual assets. Instead, their role is strictly limited to providing an interface for licensed firms.
Furthermore, the SBP mandates the use of Pakistan Rupee-denominated Client Money Accounts (CMAs). This requirement ensures strict segregation between customer assets and a service provider’s operational funds.
Moreover, banks must update their internal risk models to address the volatility of digital assets. They must perform exhaustive due diligence, verify PVARA credentials, and continuously monitor these new business relationships. Institutions must immediately report any suspicious activity to Pakistan’s Financial Monitoring Unit to comply with anti-money laundering and counter-terrorism financing rules. Existing foreign exchange obligations also remain firmly in place.
Beyond retail trading, the Pakistani government is actively investigating blockchain-integrated infrastructure. Officials are currently engaging with affiliates of World Liberty Financial to explore how stablecoins could eventually streamline cross-border payment systems.
