Federal Finance Minister Muhammad Aurangzeb has warned that Pakistan could face the risk of returning to the Financial Action Task Force (FATF) grey list if illegal digital transactions continue.
Pakistan was removed from the FATF grey list in October 2022 after steps against money laundering and terror financing. The minister highlighted that ignoring compliance in digital currency transactions may again create challenges for Pakistan under FATF rules.
Digital Currency Regulation in Pakistan
The government has set up the Pakistan Crypto Council and the Virtual Asset Authority. According to the Council’s head Bilal bin Saqib, nearly 20 million people in Pakistan are engaged in crypto transactions. The Virtual Assets Ordinance 2025 has been enforced, but permanent legislation is still required through Parliament.
Expert Opinions on FATF and Digital Assets
Experts on financial regulation said the lack of a regulatory system for digital assets in Pakistan could increase risks. Economic expert Dr. Ikram ul Haq stressed the need for blockchain analytics tools and cooperation with international regulators.
US-based financial law expert Abdul Rauf Shakoori pointed out that FATF data till April 2025 shows only 40 out of 138 countries were largely compliant with crypto regulation standards. He said Pakistan’s regulatory approach remains unclear and incomplete.
IMF Report and Pakistan’s Legal Framework
Financial journalist Shahbaz Rana noted that an IMF report recently highlighted shortcomings in Pakistan’s anti–money laundering framework. Although the Virtual Assets Ordinance 2025 has introduced basic licensing rules, cryptocurrency has not been granted formal legal status in Pakistan.
FATF Compliance and Future Steps
Analysts say Pakistan’s FATF compliance will depend on how strongly the final regulatory framework addresses licensing, consumer protection, anti–money laundering measures, and international cooperation. Without a comprehensive system, Pakistan could face pressure, but claims of immediate FATF grey listing remain speculative.
