SBP Lets Banks Open Accounts Only for PVARA-Licensed Crypto Firms
SBP lets banks open accounts only for PVARA-licensed crypto firms, with no cash and separate client money. What the April rule says and where it stands today.
Pakistani banks may open accounts for crypto firms, but only for firms licensed by the Pakistan Virtual Assets Regulatory Authority (PVARA). That is the rule in State Bank of Pakistan BPRD Circular Letter No. 10 of 2026, which we read on the SBP website on 27 September 2026.
This is not new. The letter came out in mid April 2026, five months ago, so we checked where things stand now. The short answer: the rule is in force, but a firm needs a full PVARA licence before a bank can handle its crypto business, and we could not find a public list of licensed firms on PVARA's website.
For ordinary users, that means one thing above all. A crypto app that has no PVARA licence still has no approved route into the Pakistani banking system.
SBP replaced its 2018 crypto ban with licence-based rules
The letter replaces BPRD Circular No. 03 of 2018, which had stopped banks from dealing in virtual currencies. It says the Virtual Assets Act, 2026 created PVARA as the licensing authority, so banks may now open accounts for firms "duly licensed by PVARA" as Virtual Asset Service Providers (VASPs).
A VASP is a business that exchanges, holds or transfers crypto for other people.
The SBP page does not print the date of Letter No. 10. The next letter in the series, No. 11, is dated 28 April 2026, and the letter was reported on 15 April 2026.
Banks must verify the licence and keep client money separate
Before opening an account, a bank must get a copy of the firm's PVARA licence and check it with PVARA itself. Client money must sit in a separate rupee account that pays no profit, takes no cash, and cannot be used as security for a loan.
These separate accounts are called Client Money Accounts. The letter sets these conditions:
| Rule in the SBP letter | What it means |
|---|---|
| Licence check | Bank keeps a copy of the PVARA licence and verifies it with PVARA |
| Client Money Account | Separate account for customers' money, never mixed with the firm's own funds |
| Currency | Pakistani rupees only |
| Profit | None, the account is non-remunerative |
| Cash | No cash deposits or cash withdrawals |
| Loans | Client money cannot be used as collateral for credit to the firm |
| Banks' own crypto | Banks cannot invest, trade or hold crypto with their own funds or depositors' money |
Banks must also risk-rate each firm, keep watching the account, and report suspicious transactions to the Financial Monitoring Unit. Foreign exchange rules still apply in full.
An NOC gets only a limited account, not crypto banking
A firm holding only a PVARA No Objection Certificate (NOC) can get a limited-purpose bank account to finish its licence formalities. Only after PVARA grants the licence can the bank offer more, including accounts for crypto transactions. An NOC is not a licence.
PVARA's FAQ agrees: "An NOC does not constitute a license to carry on any Virtual Asset Service." An NOC lasts three months, extendable once by up to three more, and PVARA decides a complete licence application within 90 days, extendable by 60.
So the path for any exchange runs like this:
- Apply to PVARA for an NOC.
- Get the NOC, and open a limited-purpose bank account if needed.
- Incorporate a company in Pakistan under the Companies Act, 2017.
- Apply for a licence within the NOC's validity.
- Get the licence, then open full Client Money Accounts with a bank.
PVARA's website says it has granted NOCs to Binance and HTX. That is step two, not step five.
PVARA's licence rules took effect on 21 August 2026
The two sets of licensing rules came into force on 21 August 2026, as S.R.O. 1419(I)/2026 and S.R.O. 1420(I)/2026. Firms already running on or before 5 March 2026 had to apply for an NOC by 5 September 2026 or stop, under Section 70 of the Virtual Assets Act.
The licence rules are only five weeks old. PVARA's licensing page still describes the requirements a firm must meet "when full licensing becomes available".
PVARA's FAQ says it keeps a public register of licensees, and that every licensee must show its licence number on its own website. We looked for that register on pvara.gov.pk on 27 September 2026 and could not find it. That does not prove no licence exists, but you cannot yet check one there.
For ordinary users, unlicensed apps still have no bank route
The letter covers bank accounts for licensed firms, not your personal account. It does not tell banks to block or allow transfers you make from your own account to a crypto app. What it does make clear is that no bank may treat an unlicensed firm as a crypto business customer.
Three points follow from the text:
- If a crypto seller asks you to deposit cash into a bank account "for the exchange", that is not a Client Money Account, because those accept no cash.
- Ask any platform for its PVARA licence number. A licensee must publish it on its own website, according to PVARA.
- An NOC holder is not yet licensed, and PVARA says it does not approve or guarantee any coin.
Peer-to-peer trading between individuals is a separate question. The Lahore High Court has said that P2P crypto trading is not a crime by itself, and the wider picture of whether crypto is legal in Pakistan has changed a great deal since the 2018 ban. The PVARA NOC deadline of 5 September is the step most firms are now past. If you have already lost money to a fake platform, you can report cybercrime to the NCCIA.
This is not legal or investment advice.
Common questions
Can Pakistani banks open accounts for crypto exchanges?
Yes, but only for firms licensed by PVARA, under SBP BPRD Circular Letter No. 10 of 2026. Firms with only an NOC get a limited-purpose account for licence formalities.
When did SBP allow bank accounts for crypto firms?
In April 2026. The letter was reported on 15 April 2026, and the next letter in SBP's series is dated 28 April 2026.
Can I deposit cash into a crypto firm's client account?
No. The SBP letter says Client Money Accounts allow no cash deposits and no cash withdrawals.
How do I check if a crypto firm is licensed in Pakistan?
PVARA says it publishes a public register and that licensees must show their licence number online. We could not find the register on pvara.gov.pk on 27 September 2026, so ask the firm for its licence number and confirm with PVARA.
Is Binance licensed in Pakistan?
PVARA's website says Binance and HTX have NOCs. An NOC is not a licence, according to PVARA's own FAQ.
Last checked and sources
Last checked on 27 September 2026. The account rules, the replacement of the 2018 circular, the Client Money Account conditions, the limited-purpose account for NOC holders and the ban on banks holding crypto are from SBP BPRD Circular Letter No. 10 of 2026 on the SBP website, which does not print its date; the 28 April date is printed on Letter No. 11 on the same website, and the 15 April issue date is as reported. The regulation dates and S.R.O. numbers, the 5 September transitional deadline, NOC validity, licence timelines, the public register statement and the Binance and HTX NOCs are from the PVARA website, including its FAQ, regulations and licensing pages. We did not read the Virtual Assets Act itself.
About the author
Author
Fajr Riaz is a well-talented author at Pakera.pk with expertise in creative content creation/writing and storytelling. Fajr's strength lies in creating engaging articles, detailed guides, and straight narratives that connect with readers and give meaningful insights. With her accurate attention to detail and passion for writing, Fajr has established herself as a pivotal pillar at Pakera and is invaluable.
