Framework aims to integrate digital finance, reduce financial crime risks
Key Takeaways:
i) Pakistan’s new policy framework regulates virtual assets and VASPs.
ii) The policy aligns with FATF’s Recommendation 15, emphasizing AML and CTF measures for new technologies.
iii) The initiative follows the establishment of the Pakistan Crypto Council to foster legal cryptocurrency trading and attract investment.
Islamabad, Pakistan – April 11, 2025 – Pakistan has introduced its first comprehensive policy framework to regulate virtual assets and virtual asset service providers (VASPs), aligning with the global standards set by the Financial Action Task Force (FATF). The policy, developed by a dedicated government body under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) authority, aims to integrate digital finance into the national economy while mitigating risks.
The framework is designed to enhance compliance, reduce financial crime risks, and allow space for innovation in blockchain-based finance. It aligns with FATF’s Recommendation 15, emphasizing the need for AML and CTF laws to adapt to new technologies, including virtual assets. This recommendation ensures that countries and financial institutions identify and assess the risks associated with new financial technologies and take appropriate measures to manage those risks.
This initiative follows the recent establishment of the Pakistan Crypto Council (PCC) in March 2025, a government-backed initiative aimed at regulating and integrating blockchain technology and digital assets into the country’s financial landscape. The PCC, led by Finance Minister Muhammad Aurangzeb, also appointed Binance founder Changpeng Zhao as a strategic advisor. The council aims to lay the groundwork for legal cryptocurrency trading and attract international investors.
This initiative follows the recent establishment of the Pakistan Crypto Council (PCC) in March 2025, a government-backed initiative aimed at regulating and integrating blockchain technology and digital assets into the country’s financial landscape.
The policy is set to undergo stakeholder review and legislative approval, with phased implementation planned for next year. This move signals Pakistan’s intent to embrace digital finance while ensuring regulatory compliance and investor protection.
