First policy framework to regulate virtual assets

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RAWALPINDI: Pakistan has developed its first-ever complete policy framework for the regulation of virtual assets (VAs) and virtual asset service providers (VASPs), marking a significant step towards conforming to international financial integrity norms and promoting responsible digital innovation.

A spokesman for the FIA said in a press release on Thursday that this framework has been developed by the National Working Group on VAs/VASPs, formed by the Ministry of Finance on January 2024, under the overall supervision of the AML/CFT Authority, spearheaded by the Federal Investigation Agency (FIA) and comprising senior officials of the State Bank, SECP, FMU, FBR, NACTA, MoITT and other national stakeholders from public and private sector.

This is a paradigm shift in how Pakistan views digital finance, said Sumera Azam, Director FIA- the NWG Lead involved in the policy drafting. We are embracing the future with eyes wide open. The policy proposal seeks to strike a historic balance between technological advancement and national security imperatives. It aligns squarely with Recom­mendation 15 of the Financial Action Task Force (FATF) underscoring Pakistan’s continued commitment to AML/CFT compliance and international financial integrity.

The proposed policy framework aims to curb risks related to money laundering, terrorism financing, and financial instability while harnessing the transformative potential of Blockchain-based finance.

The policy proposed by the National Working Group suggests a gradual and adaptive regulatory approach, providing space for innovation through controlled experimentation, while developing institutional expertise.

Published in Dawn, April 11th, 2025

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