Pareesa Afreen 
Dec 02, 2025
An undated image. — Canva
Pakistan moves to tighten controls on cryptocurrency transactions as the government requires Virtual Asset Service Providers (VASPs) to collect detailed information on both the originator and the beneficiary for any transfer above Rs1 million.
This step came after the newly drafted Virtual Asset Service Provider Governance & Operations Regulations 2025, the most comprehensive framework yet for regulating digital assets in Pakistan.
New rules require VASPs to verify, hold, and provide this information to authorities upon request. For the first time, full compliance with the Financial Action Task Force (FATF) rule is now required sign of how the Pakistan government is trying to bring its financial system in line with international anti-money-laundering and counter-terror-financing norms.
The regulations cover a wide range of activities relating to brokerage, custody, exchanges, lending, derivatives, asset management, token issuance, and settlement services.
Firms should also be required to implement blockchain analytics and monitoring tools, examine foreign counterparties, exercise caution with unhosted wallets, and flag transactions with enhanced anonymity.
Other focuses include corporate governance: clear records of ownership, a Board composition that meets basic requirements for "Fit and Proper Person," and annual performance reviews of members. Controls on conflicts of interest and public disclosures of statutory information are also required.
Financial resilience is underscored by the need for firms to maintain paid-up capital for each licensed activity and deposit 30% with the State Bank of Pakistan.
Cross-border outsourcing is permitted but shall not hinder regulatory oversight. Cybersecurity becomes a core requirement: every VASP shall institute an Authority-approved Cybersecurity Policy covering system monitoring, smart-contract auditing, client authentication, incident response, and safeguards against ransomware. Annual reviews and continuous testing are compulsory.
