Pakistan is planning stricter cryptocurrency regulations to strengthen financial transparency and comply with international anti-money laundering standards.
The federal government is considering new measures to monitor digital currency transactions and prevent the misuse of virtual assets for illegal financial activities.
According to reports published on Wednesday, October 28, 2026, the proposed framework aims to align Pakistan’s cryptocurrency sector with Financial Action Task Force (FATF) guidelines.
Pakistan Plans Mandatory Reporting of Suspicious Crypto Transactions
Under the proposed regulations, cryptocurrency businesses would be required to report suspicious transactions to relevant authorities.
The government also plans to introduce stronger background checks for individuals involved in virtual asset businesses.
These measures would help authorities identify potential money laundering, terrorist financing, and other financial crimes.
Additionally, cryptocurrency transactions would face stricter scrutiny under existing anti-money laundering laws.
Pakistan Virtual Assets Regulatory Authority May Receive New Powers
Sources revealed that the Pakistan Virtual Assets Regulatory Authority (PVARA) could receive additional legal powers.
The authority may be empowered to conduct customer due diligence and verify individuals participating in cryptocurrency transactions.
The government is also considering including PVARA among officially recognized financial oversight bodies.
A summary proposing these legal powers is expected to be presented during an upcoming federal cabinet meeting.
Government Targets Illegal Cryptocurrency Activities
The proposed framework also includes action against banned organizations involved in cryptocurrency-related violations.
Authorities aim to prevent illegal financial networks from using digital currencies to transfer or conceal funds.
Meanwhile, the regulatory changes could increase compliance requirements for cryptocurrency exchanges and other virtual asset businesses.
However, the proposals have not yet received final cabinet approval.
The government expects stronger oversight to improve transparency and support compliance with international financial regulations.
