The government of Pakistan is shifting its stance on cryptocurrencies, proposing a compliance-focused regulatory framework aligned with the Financial Action Task Force (FATF) guidelines. This initiative was introduced by the Federal Investigation Agency (FIA) to combat issues related to terrorism financing and money laundering, emphasizing Know Your Customer (KYC) protocols. FIA Director Sumera Azam highlighted this as a significant shift in the country's approach to digital finance, aiming to balance technological progress with national security concerns. The proposed framework will undergo legislative approval and may begin rolling out in phases starting in 2026. This change comes on the heels of a previous anti-crypto attitude, particularly in 2023, when calls for a blanket ban on digital assets were made. The Finance Ministry's current move to clarify crypto regulations aims to attract foreign investments and better integrate Pakistan into the global crypto economy. Bilal bin Saqib, CEO of the Pakistan Crypto Council, noted the country's potential as a vibrant market due to a young population and a workforce adept in web3 technologies.

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