Is Cryptocurrency Legal in Pakistan in 2026? SBP Issues Historic Circular 10

The State Bank of Pakistan (SBP) has officially integrated crypto and digital currency in Pakistan into the formal banking system. By withdrawing the restrictive 2018 ban, the central bank has paved the way for a regulated digital economy.

The End of the Crypto Ban

For years, the 2018 BPRD Circular No. 3 acted as a barrier, effectively isolating Pakistan from the global virtual asset market. Today, the SBP replaced it with BPRD Circular No. 10 (2026). This new directive allows banks and financial institutions to open accounts for Virtual Asset Service Providers (VASPs).

The Virtual Asset Act 2026 is now law, and the Pakistan Virtual Asset Regulatory Authority (PVARA) has begun issuing licenses. Only entities vetted and licensed by PVARA can access these banking services, ensuring a secure environment for the billions of dollars currently held by Pakistanis in offshore wallets.

While the SBP opens doors for private exchanges, it is also looking inward. Insiders suggest the SBP will likely launch its own digital currency soon. This move aims to document the economy and streamline cross-border remittances through the Raast integration with global platforms.

If you are holding assets or running a fintech startup, the “grey area” is gone. Under the new Pakistan crypto regulation framework, you can expect:

• Legal bank accounts for regulated crypto platforms.
• Strict AML/CFT monitoring to prevent illicit activities.
• Protection under the Virtual Asset Act 2026 for retail investors.

The government’s goal is clear: digitize all federal and provincial payments by June 2026. Pakistan is no longer watching the digital revolution from the sidelines—it is leading it.