Authorities in Pakistan have put forward a regulatory framework for digital assets that emphasizes compliance, aligning with the guidelines established by the Financial Action Task Force (FATF), the international body responsible for combating money laundering, as reported by various sources.
The Federal Investigation Agency (FIA) of Pakistan has introduced this regulatory structure to tackle issues related to terrorism financing, money laundering, and to implement Know Your Customer (KYC) regulations as mandated by the international organization. FIA Director Sumera Azam remarked:
“This represents a fundamental change in Pakistan’s approach to digital finance. The proposed policy seeks to create a historic equilibrium between technological progress and national security needs.”
This proposed framework awaits legislative approval and feedback from digital asset firms operating within the country, with a phased implementation anticipated to start in 2026.
After years of a staunchly anti-crypto position, regulators in Pakistan recently began a significant shift towards regulating cryptocurrencies. This policy reversal reached its peak in 2023 when officials called for a nationwide ban on digital assets.
Appointments to the Pakistan Crypto Council. Source: Bilal Bin-Saqib.
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Pakistan looks forward to the future of finance with regulatory adjustments
In May 2023, Aisha Ghaus Pasha, the former minister of state for finance, stated that Pakistan would never endorse the legalization of cryptocurrencies due to their potential to sidestep FATF regulations.
However, less than two years later, in February 2025, the Finance Ministry indicated a significant regulatory transformation by establishing the Pakistan Crypto Council. This council aims to create clear regulations for crypto and attract foreign investments.
“Pakistan is a low-cost, high-growth market, with 60% of the population under 30. We have a web3 savvy workforce ready to innovate,” stated Bilal bin Saqib, CEO of the Pakistan Crypto Council, in a March 20 post.
Binance co-founder Changpeng Zhao meets with Pakistan’s foreign minister Ishaq Dar.
The Council is investigating the potential of utilizing excess energy for Bitcoin (BTC) mining, as part of its broader vision to establish Pakistan as an international center for crypto mining.
On April 7, the Council appointed Changpeng Zhao, co-founder of Binance, as a crypto advisor to assist in shaping the organization’s policies.
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