Introduction
In a noteworthy development, regulators in Pakistan are set to introduce a compliance-driven framework for digital assets, aligning with the standards established by the Financial Action Task Force (FATF), an international body responsible for combating money laundering. As reported by The Express Tribune, this initiative stems from the need to enhance measures against terrorism financing and money laundering, as well as the implementation of strict Know Your Customer (KYC) protocols.
The Driving Force
The Federal Investigation Agency (FIA) of Pakistan is the driving force behind this initiative, with Director Sumera Azam highlighting that this marks a significant shift in the nation’s perspective on digital finance. Azam stated:
“This proposal aims to create a groundbreaking balance between the advancement of technology and the necessities of national security.”
Regulatory Framework and Historical Context
While the regulatory framework is still pending legislative endorsement and further consultations with local digital asset companies, a phased implementation is anticipated to initiate in 2026.
Historically, Pakistan’s approach towards cryptocurrencies has been one of skepticism. The government’s opposition peaked in 2023 when officials announced intentions for a nationwide prohibition on digital assets. This shift in mindset is particularly striking given the comments made by former finance minister Aisha Ghaus Pasha, who asserted that Pakistan would not legalize cryptocurrencies due to concerns about their potential to bypass FATF regulations.
Transformative Regulatory Approach
In February 2025, the Finance Ministry indicated a transformative regulatory approach by forming the Pakistan Crypto Council, aimed at clarifying cryptocurrency regulations and inviting international investment. Bila bin Saqib, CEO of the Council, amplified this sentiment in a March 20 post, emphasizing Pakistan’s appeal as a cost-effective, rapidly growing market with a youthful demographic—over 60% under the age of 30—and a workforce well-versed in web3 technologies.
Future Initiatives
In conjunction with this, the Council is also investigating the feasibility of utilizing surplus energy for Bitcoin mining operations, as part of a comprehensive strategy to position Pakistan as a global crypto mining center. Notably, on April 7, the Council appointed Binance co-founder Changpeng Zhao as a cryptocurrency advisor to assist in shaping their policy framework.
