Pakistan Drafts AML Rules for Crypto VASPs

Pakistan has drafted new anti–money laundering and counter-terror financing regulations for virtual asset service providers to strengthen oversight.

The rules are designed to monitor large crypto transactions, curb illicit financial flows, and reinforce supervision of the country’s digital asset ecosystem.

The draft aims to prevent money laundering and terror financing by requiring database submissions for crypto transfers exceeding one million.

Under the proposed system, VASPs must maintain detailed records of senders and recipients and provide crypto transfer data immediately upon request by agencies.

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The regulations cover brokerage, custody, exchange and token issuance, and require blockchain tracking tools to identify and scrutinise high-risk transactions.

Cybersecurity is a high-priority area requiring annual policies, capital requirements, security deposits, and mandatory testing and auditing to ensure integrity.

The draft proposes fit-and-proper criteria for VASP board members, prior approval for ownership changes, and conditions for security deposit refunds.

Authorities plan dedicated laws for fintech and digital firms, implement risk-based technology supervision, introduce data-sharing, and consider a blockchain monitoring unit.