Pakistan eyes digital asset regulation

Finance Minister Muhammad Aurangzeb on Tuesday stressed the importance of a well-regulated digital asset framework that aligns with international best practices and complies with Financial Action Task Force (FATF) guidelines to ensure transparency, financial security and economic stability.

He said the government was committed to exploring digital assets and integrating blockchain technology as part of its broader strategy to modernise the financial sector. The finance czar expressed this while chairing a high-level meeting on digital assets.

The meeting was attended by foreign delegates, including President Trump's advisors on digital assets. Minister of State for Information Technology and Telecom Shaza Fatima Khawaja, governor of the state bank, secretary finance and secretary IT & Telecom were also present.

Participants discussed the global evolution of cryptocurrency, its increasing adoption, and the regulatory frameworks being implemented internationally and in line with US government policies. The deliberations focused on creating financial security, mitigating risks and assessing the potential impact of digital assets on Pakistan's economy.

The finance minister highlighted the government's commitment to the world's exploring digital assets and integrating blockchain technology as part of its broader strategy to modernise the financial sector and leverage technological advancements.

Discussions also included the tokenisation of key infrastructure and state-owned enterprises' (SOEs) assets, allowing for increased liquidity, broader investor participation and greater efficiency in capital markets.

It was noted that various stakeholders, including foreign and domestic investors, have already developed product-ready digital asset solutions that could be explored within a regulatory sandbox.

Pakistan currently has over 20 million active users in the digital asset market who are facing great difficulties in conducting business, paying unnecessarily heavy fees to transact.

The finance minister stressed his commitment to regulate and encourage the industry by adopting the appropriate framework, laws and incentives to ensure complete transparency and facilitate digital business in the near future.