Pakistan has introduced its first extensive political framework to regulate virtual assets and virtual asset service providers (VASPS), which marks a major step towards integrating digital funding into the national economy while adapting to global standards set by Financial Action Task Force (FATF).

The policy was announced on Thursday by the Federal Investigation Agency (FIA) and was developed by a dedicated government body during AML-White Layout of Money (AML) and Counter Terrorism Financing (CTF).

It aims to set clear rules for cryptocurrencies and platforms that handle them, including exchanges, wallets and other service providers.

“This is a paradigm shift in how Pakistan sees digital funding,” said FIA director Sumera Azam. “The policy proposal seeks to create a historical balance between technological progress and national security imperatives.”

The framework is designed to improve compliance, reduce economic crime risks and give way to innovation in the growing field of blockchain-based financing. It is in line with FATF’s recommendation 15, which emphasizes the need for AML and CTF laws to adapt to new technologies, including virtual assets.

The initiative follows the recent establishment of Pakistan Crypto Council, which was formed to lay the basis for legal cryptocurrency and attract international investors to Pakistan’s digital financial sector.

The policy is set to review stakeholder review and regulatory approval with phase implementation planned for next year.

According to the FIA, the policy is not only about enforcement, but also about building institutional capacity, encouraging responsible innovation and integrating Pakistan into the global digital economy.