Crypto game in Pakistan has now changed. I have seen that Pakistan's central bank has eased the 2018 crypto ban and is now providing banking facilities to licensed virtual asset service providers. This is a major shift.

Actually, when the ban was imposed in 2018, crypto activities moved to informal channels. People turned to P2P trading, and in the past few years, it has grown by over 700%. In other words, the ban didn't help; it only pushed everything underground.

Now, under the new policy, banks are allowed to work with crypto companies, but with strict regulations. VASPs will need to obtain licenses, banks must keep customer funds in separate accounts, and all transactions will be monitored. Fraud prevention and AML frameworks will also be strictly enforced.

Behind this is the 2026 Virtual Assets Act, which provides a legal framework for digital assets. Pakistan is now trying to integrate its banking system with crypto. Banks will need to verify any firm before onboarding and report suspicious transactions.

Interestingly, banks are not allowed to invest in crypto themselves. They can only provide custody and trading services. This approach aims to bring the crypto industry into the mainstream while managing risks. Many people are sharing this news on Twitter and Telegram, and discussions are ongoing on 36 Telegram channels about how this will impact crypto in South Asia.

Overall, this is a significant step for Pakistan. Bringing the informal P2P market into the formal banking system, strengthening regulation, and giving legal recognition to digital assets—all are steps toward building a structured crypto ecosystem.