Pak-UK Energy Cooperation Meeting

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Islamabad, April 2025 — In a major step towards aligning with global financial standards and promoting responsible innovation in the digital economy, Pakistan has introduced its first-ever comprehensive policy framework for the regulation of Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs).

The policy has been developed by the National Working Group on VAs/VASPs — a body constituted in January 2024 by the Ministry of Finance. Operating under the overarching guidance of the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Authority and led by the Federal Investigation Agency (FIA), the group includes senior representatives from key national institutions such as the State Bank of Pakistan, SECP, FMU, FBR, NACTA, MoITT, and other public and private sector stakeholders.

“This marks a transformative shift in Pakistan’s approach to digital finance,” stated Sumera Azam, Director at FIA and lead of the National Working Group. “The framework reflects a forward-looking vision — one that embraces technological evolution while safeguarding national interests. Our aim is to balance innovation with robust oversight in line with Recommendation 15 of the Financial Action Task Force (FATF), reaffirming Pakistan’s commitment to international AML/CFT standards.”

The proposed framework is designed to mitigate risks associated with money laundering, terrorist financing, and financial instability, while also enabling the responsible adoption of blockchain-based financial solutions. Emphasizing a phased, adaptive regulatory model, the policy encourages controlled innovation and supports capacity building across relevant institutions.

This landmark initiative is set to place Pakistan at the forefront of virtual asset regulation in the region. The framework will now move into the next stages of stakeholder consultations, legislative development, and phased implementation starting later this year.