PTBP Web Desk
Pakistan has unveiled its most comprehensive regulatory framework to date for the digital asset and cryptocurrency industry with the newly drafted Virtual Asset Service Provider (VASP) Governance and Operations Regulations 2025. The proposed rules signal a decisive move toward a tightly supervised crypto ecosystem, aligning the country with global anti-money laundering (AML) and counter-terrorism financing (CTF) standards.
Under the new framework, all licensed Virtual Asset Service Providers (VASPs) will face stringent compliance obligations. One of the most significant provisions requires firms to collect, verify, and maintain detailed identifying information for both the originator and recipient of any crypto transfer exceeding Rs 1 million. Regulators will have the authority to request this data at any time, thereby strengthening traceability and oversight across the digital financial system.
The 2025 regulations enforce full compliance with the Financial Action Task Force (FATF) Travel Rule, bringing Pakistan’s crypto regulatory standards closer to global benchmarks. This compliance framework places a wide spectrum of crypto activities under regulatory supervision, including:
- Crypto brokerage and custody services
- Exchange platforms and trading operations
- Lending and derivatives trading
- Token issuance and asset management
- Settlement and transaction operations
The framework also mandates the use of blockchain analytics, real-time monitoring, and robust internal controls to detect and prevent system abuse or coordinated attacks.
Governance standards have been significantly tightened under the draft rules. VASPs are required to maintain transparent ownership structures, disclose beneficial controllers, and ensure board members possess relevant qualifications. These reforms aim to mitigate governance risks and enhance investor confidence in Pakistan’s digital asset market.
Financial and cybersecurity measures are at the center of the 2025 framework. Licensed VASPs must maintain minimum paid-up capital for each service category, with 30 percent of that amount deposited as security with the State Bank of Pakistan. Cross-border outsourcing will only be permitted if it does not restrict regulatory oversight, ensuring continued supervision of operations.
Cybersecurity obligations are among the strictest in the region. VASPs must implement Authority-approved policies that include:
- Access control and user authentication protocols
- Smart contract audits and monitoring systems
- Incident response procedures and reporting
- Ongoing security testing and vulnerability assessments
These measures aim to protect both investors and the broader financial system from emerging cyber threats.
If fully implemented, the Virtual Asset Service Provider Regulations 2025 will establish a more transparent, secure, and regulated crypto market in Pakistan. This marks a major shift from a previously fragmented environment to a structured, compliance-driven regime. By enhancing regulatory clarity and enforcement, the framework is expected to attract institutional investment, reduce illicit activity, and foster innovation in the digital asset sector.
Experts believe that the regulations will also help boost investor confidence, improve market integrity, and pave the way for Pakistan to become a more credible player in the regional and global crypto ecosystem.
