In a groundbreaking move to modernize its financial regulatory landscape and strengthen international compliance, Pakistan has introduced its first comprehensive policy framework to regulate Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs).
The National Working Group on VAs/VASPs, established by the Ministry of Finance in January 2024 under the supervision of the AML/CFT Authority and spearheaded by the Federal Investigation Agency (FIA), developed the strategic framework.
The group comprises senior representatives from the State Bank of Pakistan, Securities and Exchange Commission of Pakistan (SECP), Financial Monitoring Unit (FMU), Federal Board of Revenue (FBR), National Counter Terrorism Authority (NACTA), Ministry of Information Technology and Telecommunication (MoITT), and other key stakeholders from both the public and private sectors.
“This is a paradigm shift in how Pakistan views digital finance,” said Sumera Azam, Director at the FIA and Lead of the National Working Group. “We are embracing the future with eyes wide open. Our policy proposal strikes a historic balance between fostering technological innovation and safeguarding national security interests.
It aligns squarely with Recommendation 15 of the Financial Action Task Force (FATF), reaffirming Pakistan’s commitment to AML/CFT compliance and global financial integrity.”
The proposed framework addresses critical risks associated with money laundering, terrorism financing, and financial instability, while promoting the responsible use of blockchain-based technologies. Adopting a gradual and adaptive regulatory approach, the framework encourages controlled experimentation, allowing for innovation alongside the development of regulatory and institutional expertise.
This initiative positions Pakistan among the leading countries in South Asia to proactively regulate the rapidly evolving virtual assets ecosystem. The framework will now move into the next phases, including stakeholder consultations, legislative processes, and a phased implementation plan expected to commence later this year.
The policy marks a significant milestone in Pakistan’s ongoing efforts to integrate into the global financial system, strengthen domestic financial safeguards, and cultivate a thriving, innovative digital economy.
