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In a significant development marking a shift in Pakistan’s stance on digital finance, national regulatory authorities have introduced a new framework for digital assets. This initiative is aimed at aligning the country’s regulatory practices with international standards set by the Financial Action Task Force (FATF), sources revealed to TechJuice.
The initiative, introduced by the Federal Investigation Agency (FIA), is designed to address critical concerns such as terrorism financing, money laundering, and the enforcement of stringent Know Your Customer (KYC) protocols.
FIA Director Sumera Azam emphasized the significance of this development, stating, “This is a paradigm shift in how Pakistan views digital finance. The policy proposal seeks to strike a historic balance between technological advancement and national security imperatives.”
The proposed framework requires legislative approval before the implementation phase begins, while stakeholders operating in Pakistan receive consultation opportunities. The implementation of this plan will start in 2026 after the legislative approval process ends.
The drastic change signals a transformation for a nation that not long ago maintained strict opposition against cryptocurrency. Regulatory bodies across all national jurisdictions pushed for a restriction on digital currencies during 2023 because of their worries regarding financial criminal activities and non-compliance issues. The initial blockchain resistance from the government weakened in early 2025.
In February 2025, the Finance Ministry initiated a seismic policy shift by establishing the Pakistan Crypto Council, a body tasked with developing a clear regulatory environment for cryptocurrencies and positioning Pakistan as a destination for foreign investment in digital assets.
Highlighting the country’s potential, the council’s CEO Bilal bin Saqib, said in a March 20 post on X (formerly Twitter), “Pakistan is a low-cost, high-growth market, with 60% of the population under 30. We have a web3 native workforce ready to build.”
Spoke to Bloomberg this morning 👇🏻
Our message is clear – Pakistan is done sitting on the sidelines! We want Pakistan as the leader in blockchain-powered finance. Pakistan is a low-cost high-growth market with 60% of the population under 30. We have a web3 native workforce ready… pic.twitter.com/VwhGGh7QWg
— Bilal bin Saqib MBE (@Bilalbinsaqib) March 20, 2025
The Council is also exploring the use of Pakistan’s surplus energy resources to support Bitcoin mining, viewing it as a strategic move to turn the nation into a global hub for crypto mining operations.
In addition to this, Binance co-founder Changpeng Zhao was appointed on April 7 as a crypto advisor to the Pakistan Crypto Council (PCC). His role will involve helping shape the country’s emerging digital asset policies and frameworks.
As the country embarks on this regulatory transformation, Pakistan is poised to become a prominent player in the digital finance space, balancing innovation with national and global compliance standards.
