Cryptocurrency trading in Pakistan has entered a new phase this year after the government formally ended a seven-year ban on digital assets, opening the door to regulated participation in a market that already counts tens of millions of local traders.

The State Bank of Pakistan and the Ministry of Finance lifted the prohibition on April 17, establishing a framework under the newly created Pakistan Virtual Assets Regulatory Authority, or PVARA, which now licenses exchanges, custodians and token issuers. The shift followed the passage of the Virtual Assets Act 2026, giving PVARA permanent statutory authority and formally classifying cryptocurrency as property under Pakistani law.

Banks, which had been barred from servicing crypto businesses since 2018, can now open segregated, rupee-denominated accounts for PVARA-licensed providers, though they remain barred from holding or trading crypto assets themselves. In practice, this means Pakistanis can now expect a more direct path from local bank accounts into regulated exchanges, replacing years of reliance on peer-to-peer transfers through mobile wallets such as Easypaisa and JazzCash.

The regulatory opening comes after Pakistan had already become one of the largest crypto markets in the world by user activity, despite years of legal ambiguity. Estimates place local holdings of digital assets in the tens of billions of dollars, driven largely by inflation, currency depreciation and the appeal of remittance channels outside the traditional banking system. The government’s own posture has shifted accordingly, with officials appointing a special assistant on blockchain and cryptocurrency policy last year and announcing plans for a state-held Bitcoin reserve alongside efforts to attract crypto mining and data centre investment.

For everyday traders, the practical risks have not disappeared simply because the ban has been lifted. No domestic exchange has yet been licensed under the new framework, meaning most retail trading still runs through international platforms and informal channels, both of which carry their own exposure. Price volatility, the absence of deposit protection, and the early stage of Pakistan’s regulatory rollout all remain relevant considerations for anyone moving into the space for the first time.

Readers who want to track how these shifts are playing out in real time, including price movements and platform-specific developments, can follow WeeklyPk’s ongoing coverage on our crypto market watch page.