Wu Says has learned that the State Bank of Pakistan has issued Circular No. 10 of 2026, which replaces the 2018 provisions on prohibiting the handling of virtual assets under the Virtual Asset Act (2026). It allows its regulatory entities to open bank accounts for virtual asset service providers licensed by the Pakistan Virtual Asset Regulatory Authority (PVARA) and their clients. Regulatory requirements include verifying licenses, conducting due diligence, and opening separate client funds accounts for settling authorized transactions; it prohibits commingling of funds, cash deposits and withdrawals, and using funds as collateral for financing, while continuously monitoring transactions and complying with anti-money laundering regulations. In addition, only institutions with a no-objection certificate may open limited-purpose accounts, and regulatory entities may not use their own funds or their clients’ funds to invest in, trade in, or hold virtual assets.