Pakistan has introduced its first comprehensive policy framework to regulate virtual assets and virtual asset services suppliers (VASPS), marking an important step towards the integration of digital finances in the national economy while aligning with the global standards established by the Financial Action Task Force (FATF).
Announced Thursday by the Federal Research Agency (FIA), the policy was developed by a government agency dedicated under the authority against money laundering (AML) and financing against terrorism (CTF).
Its objective is to establish clear rules for cryptocurrencies and platforms that handle them, including exchanges, wallets and other service providers.
“This is a paradigm shift in the way Pakistan sees digital finances,” said the director of the FIA, Sumera Azam. “The policy proposal seeks to achieve a historical balance between technological progress and national security imperatives.”
The framework is designed to improve compliance, reduce the risks of financial crimes and allow space for innovation in the growing field of blockchain -based finances. It is aligned with FATF recommendation 15, which emphasizes the need for AML and CTF laws to adapt to new technologies, including virtual assets.
The initiative follows the recent establishment of the Crypto Council of Pakistan, which was formed to lay the basis for the legal trade of cryptocurrencies and attract international investors to the Digital Finance sector of Pakistan.
The policy will undergo a review of the interested parties and legislative approval, with a gradual implementation provided for next year.
According to the FIA, politics is not only about application, but also in the construction of institutional capacity, encouraging responsible innovation and integrating Pakistan into the global digital economy.
