Pakistan has unveiled its first comprehensive policy to regulate virtual assets and virtual asset service providers (VASPs), marking a significant step towards incorporating digital finance into the national economy.
As per reports, the new framework, announced by the Federal Investigation Agency (FIA), was developed under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) authority.
The policy sets clear guidelines for the handling of cryptocurrencies, including regulations for exchanges, wallets, and other service providers. FIA Director Sumera Azam described the move as a paradigm shift in Pakistan’s approach to digital finance, emphasizing the need to balance technological progress with national security priorities.
Designed to improve compliance, reduce financial crime risks, and foster innovation in blockchain-based finance, the policy aligns with the Financial Action Task Force (FATF) Recommendation 15, which advocates for the adaptation of AML and CTF regulations to address the challenges posed by emerging technologies such as virtual assets.
The announcement follows the recent formation of the Pakistan Crypto Council, a body aimed at laying the foundation for legal cryptocurrency trading and attracting international investment into the country’s digital finance sector.
The policy will undergo a review by stakeholders and is expected to receive legislative approval, with phased implementation set to begin next year.
The FIA noted that the framework not only focuses on enforcement but also aims to build institutional capacity, encourage responsible innovation, and integrate Pakistan into the global digital economy.
