Pakistan released its first regulatory framework to control digital assets and service providers on April 10, 2025, in accordance with the Financial Action Task Force’s (FATF) recommendations on counter-terrorism financing (CTF) and anti-money laundering (AML). The goal of the policy, which was created by a government task force under the AML/CTF jurisdiction, is to provide precise guidelines for cryptocurrencies and associated enterprises, addressing worries about financial crimes while encouraging innovation.
This effort comes after the Pakistan Crypto Council was established in March 2025 with the goal of establishing a legal framework for cryptocurrency trading in order to draw in foreign investment. Bitcoin and other cryptocurrencies are neither prohibited nor illegal in Pakistan, despite the fact that they are not formally regulated there. The State Bank of Pakistan has not given any people or organizations permission to deal in virtual currencies as of January 16, 2021.
The policy will undergo stakeholder review and legislative processes before phased implementation begins next year. FIA Director Sumera Azam emphasized that this marks a significant shift in Pakistan’s approach to digital finance, balancing technological advancement with national security. The framework aligns with FATF Recommendation 15, ensuring AML and CTF measures adapt to emerging financial technologies.
