Pakistan regulators have proposed a regulatory framework for digital assets which focuses on compliance, in accordance with the rules established by the Financial Action Task Force (FATF), the supranational organization which finances policies for money laundering, reported the Express Tribune.
According to the report, the Federal Investigation Agency (FIA) of Pakistan presented the regulatory framework to combat the financing of terrorism, the money laundering provisions and know the controls of your client (KYC) applied by the supranational organization. The report quoted the director of the FIA, Sumera Azam, saying:
“This is a paradigm shift in the way Pakistan considers digital finance. The policy proposal aims to find a historical balance between technological progress and national security imperatives.”
The proposed framework is subject to legislative approval and contributions from digital asset companies operating in the country, with a deployment in several phases expected from 2026.
Pakistan regulators recently led a regulatory pivot embracing cryptocurrencies after being explicitly anti-Crypto for years. The government’s anti-Crypto position struck a crescendo in 2023 when Pakistani officials called for a ban on the country of digital assets.
Nominations in Pakistan Crypto Council. Source: Bilal bin-saqib. Source: Binal bin-saqib
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Pakistan embraces the future of money in the quarter of regulations
In May 2023, the former Minister of State for Finance and Income, Aisha Ghaus Pacha, said that Pakistan would never legalize cryptocurrencies due to the potential of digital assets to circumvent FATF regulations.
Less than two years later in February 2025, the Pakistan Ministry of Finance reported a seismic regulatory change by forming Pakistan Crypto Council to establish clear regulations in cryptography in the country and attract foreign investments.
“Pakistan is a low-cost and high growth market, with 60% of the population under the age of 30. We have an indigenous web3 workforce ready to build,” said CEO of Pakistan Crypto Council Bilal Bin Saqib in a position of March 20.
The co-founder of Binance, Changpeng Zhao, meets the Pakistani Minister of Foreign Affairs Ishaq Dar. Source: Foreign Pakistan Ministry
The Council explores the use of excessive energy to exploit Bitcoin (BTC) in the context of a wider effort to transform Pakistan into an international center for the exploitation of cryptography.
On April 7, the council appointed the co-founder of Binance Changpeng Zhao as an crypto advisor to guide the political efforts of the organization.
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