For every virtual asset transfer of more than Rs. 1 million, Virtual Asset Service Providers (VASPs) in Pakistan will be required to obtain, verify, and maintain detailed information on the originator and the beneficiary, and provide the information to the authorities upon request.
The increased verification requirement is the government’s newly drafted Virtual Asset Service Provider Governance & Operations Regulations 2025, the most far-reaching attempt so far by the country to regulate digital assets.
The rule indicates a definitive inclination toward better tracking of large-value crypto transactions as Pakistan attempts to align its financial controls with international anti-money-laundering and counter-terror-financing norms.
Authorities have also made full adherence to the FATF Travel Rule mandatory, making transparency a requirement in the country’s growing digital asset space.
The regulations also introduce an expansive framework that regulates nearly every conceivable activity in virtual assets: brokerage, custody, exchange operations, lending, derivatives, asset management, the issuance of tokens, and settlement services.
Such organizations must put in place rigorous mechanisms to avoid market manipulation, coordinated attacks, and other forms of system abuses, the rules stated.
Ignored but Inevitable: The Rise of Crypto in Pakistan’s Shadow Economy
