Pakistan Unveils First-Ever Policy to Regulate Virtual Assets and VASPs, Aligning with FATF Standards
In a significant development for the country’s digital finance ecosystem, Pakistan has introduced its first comprehensive policy framework to regulate virtual assets and Virtual Asset Service Providers (VASPs). The move marks a pivotal moment in the country’s financial history, signaling a strong commitment to embracing digital innovation while ensuring compliance with international standards set by the Financial Action Task Force (FATF).
The policy was officially announced on Thursday by the Federal Investigation Agency (FIA). It has been crafted under the auspices of Pakistan’s Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) authority, with the intent of setting a robust regulatory foundation for the burgeoning virtual asset sector.
The new framework outlines a clear set of rules for dealing with cryptocurrencies and the various platforms that facilitate their exchange, including digital wallets, crypto exchanges, and other service providers. These measures are designed to prevent financial crimes while nurturing innovation within the blockchain and crypto-finance space.
“This is a paradigm shift in how Pakistan views digital finance,” stated FIA Director Sumera Azam. “The policy proposal seeks to strike a historic balance between technological advancement and national security imperatives.”
At the heart of the framework is FATF’s Recommendation 15, which underscores the necessity for AML and CTF regulations to evolve alongside technological innovation. The policy not only adheres to these recommendations but also positions Pakistan as a potential leader in responsible crypto regulation across the region.
The timing of this policy comes shortly after the creation of the Pakistan Crypto Council, a new body aimed at legitimizing cryptocurrency trading within the country. The Council has been established to attract foreign investment into Pakistan’s digital financial ecosystem and help shape the regulatory environment for blockchain-based services.
The framework is designed to be implemented in phases, following a period of stakeholder consultation and legislative review. Authorities anticipate a full rollout to begin next year, pending parliamentary approval.
According to the FIA, the objective of this policy extends beyond mere enforcement. It also focuses on building institutional capacity, encouraging the development of responsible fintech innovations, and creating a secure environment that integrates Pakistan into the broader global digital economy.
Experts believe this regulatory initiative could pave the way for safer crypto adoption in Pakistan while also opening up new opportunities for financial inclusion, cross-border trade, and tech-driven economic growth. As nations around the world grapple with how to manage the risks and rewards of virtual currencies, Pakistan’s policy could serve as a blueprint for balancing regulatory oversight with innovation.
In an era where digital assets are increasingly shaping the future of finance, Pakistan’s forward-looking approach may prove instrumental in transforming its financial landscape and attracting both domestic and international players to its digital economy.