Pakistan unveils first-ever policy to regulate virtual assets, aligns with FATF guidelines
Finance Minister Muhammad Aurangzeb (left) unveils logo of Pakistan Crypto Council with Binance Founder Changpeng Zhao, as council's strategic adviser, in Islamabad on April 7, 2025. Photo courtesy: Handout/Finance Division
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Pakistan has introduced its first comprehensive policy framework to regulate virtual assets and virtual asset service providers (VASPs), marking a major step toward integrating digital finance into the national economy while aligning with global standards set by the Financial Action Task Force (FATF).
Announced on Thursday by the Federal Investigation Agency (FIA), the policy was developed by a dedicated government body under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) authority.
It aims to set clear rules for cryptocurrencies and the platforms handling them, including exchanges, wallets, and other service providers.
"This is a paradigm shift in how Pakistan views digital finance," said FIA Director Sumera Azam. 'The policy proposal seeks to strike a historic balance between technological advancement and national security imperatives.'
The framework is designed to enhance compliance, reduce financial crime risks, and allow space for innovation in the growing field of blockchain-based finance. It aligns with FATF's Recommendation 15, which emphasises the need for AML and CTF laws to adapt to new technologies, including virtual assets.
The initiative follows the recent establishment of the Pakistan Crypto Council, which was formed to lay the groundwork for legal cryptocurrency trading and attract international investors to Pakistan's digital finance sector.
The policy is set to undergo stakeholder review and legislative approval, with phased implementation planned for next year.
According to the FIA, the policy is not only about enforcement but also about building institutional capacity, encouraging responsible innovation, and integrating Pakistan into the global digital economy.
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