Pakistan has introduced a comprehensive framework to regulate virtual asset service providers (VASPs), aiming to tackle money laundering and terror financing in the booming cryptocurrency sector.
The new rules, aligned with global Financial Action Task Force (FATF) standards, are set to transform how crypto transactions are monitored across the country.
Under the proposed regulations, all crypto transfers exceeding Rs1 million will require mandatory reporting, with detailed records of both senders and recipients submitted to authorities. Officials stress that this move will help curb illicit financial flows while strengthening oversight of Pakistan’s emerging digital asset ecosystem.
The draft framework covers all major crypto-related activities, including exchanges, brokerage services, custody, and token issuance. It also introduces blockchain tracking tools to detect suspicious movements and prevent illegal activity. Unidentified or high-risk transactions will face strict scrutiny, ensuring tighter control over financial crimes.
Cybersecurity has been declared a top priority under the new rules. Every virtual asset company will need an annual cybersecurity policy approved by the relevant authority. Additionally, firms must meet capital requirements, provide security deposits, and maintain financial stability measures. Security deposits will only be refunded once businesses are fully cleared upon shutdown.
The framework emphasizes good governance, requiring board members of VASPs to meet fit-and-proper criteria. Any change in ownership or control will need prior approval from the Virtual Asset Authority. Continuous system testing and auditing are also mandated to protect the integrity of crypto service operations.
Authorities are considering the creation of a dedicated unit to monitor blockchain activity and a new data-sharing mechanism to support cross-industry action against financial criminals. Experts believe these steps, along with technology-driven supervision, will make Pakistan’s crypto landscape more transparent and secure.
