Pakistan introduced its first full political framework to regulate virtual assets and virtual asset service providers (VASP), marking a major step towards the integration of digital finance in the national economy while aligning with the global standards established by the Financial Action Task Force (GAFA).
Announced Thursday by the Federal Investigation Agency (FIA), the policy has been developed by a government body dedicated under the anti-whiteness authority (LMA) and Financing Financing (CTF).
It aims to define clear rules for cryptocurrencies and platforms that manage them, including exchanges, wallets and other service providers.
“This is a paradigm shift in the way Pakistan considers digital finance,” said FIA director, Sumera Azam. “The political proposal aims to find a historical balance between technological progress and national security imperatives.”
The framework is designed to improve compliance, reduce the risk of financial crime and allow space for innovation in the growing field of blockchain -based finance. It aligns with recommendation 15 of the FATF, which emphasizes the need for AML and CTF laws to adapt to new technologies, including virtual assets.
The initiative follows the recent creation of Pakistan Crypto Council, which has been formed to lay the foundations for legal cryptocurrency and attract international investors in the digital finance sector of Pakistan.
Policy should undergo the stakeholder examination and legislative approval, the gradual implementation provided for next year.
According to FIA, policy does not only concern application, but also strengthening institutional capacities, encouraging responsible innovation and Pakistan integration into the global digital economy.
