National Working Group on VAs/VASPs proposes Landmark Policy Framework to Regulate Virtual Assets/VASPs in Line with FATF Recommendations

Islamabad:In a decisive move to align with international financial integrity standards and foster responsible digital innovation, Pakistan has formulated its first-ever comprehensive policy framework for the regulation of Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs).
This strategic 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 from the State Bank of Pakistan, 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.
This landmark policy, which positions Pakistan at the forefront of responsible virtual asset regulation in the region, is expected to undergo stakeholders’ consultation, legislative proceedings and phased implementation beginning this year.