The Institute of Cost & Management Accountants of Pakistan (ICMAP) has recommended the creation of a dedicated regulatory unit within the Securities & Exchange Commission of Pakistan (SECP) or the State Bank of Pakistan (SBP), in collaboration with the Federal Board of Revenue (FBR), to oversee cryptocurrency regulations.
The proposal aims to ensure inclusive and transparent policy development through active stakeholder engagement.
As the use of cryptocurrency continues to rise, ICMAP has emphasized the need for Pakistan to develop a Central Bank Digital Currency (CBDC) to maintain financial control, enhance security, and drive innovation in the sector.
Strengthening Regulatory Oversight
The ICMAP urged the Pakistan Crypto Council (PCC) to define and classify digital assets—such as securities, commodities, and payment instruments—in accordance with Financial Action Task Force (FATF) guidelines and international standards. Additionally, it recommended the adoption of a risk-based licensing system for cryptocurrency exchanges, wallets, and service providers, along with the strict enforcement of Know Your Customer (KYC), Anti-Money Laundering (AML), and Countering Financing of Terrorism (CFT) regulations.
To safeguard consumer interests, ICMAP proposed requiring service providers to offer clear disclosures, implement robust cybersecurity measures, and establish fraud prevention systems. Furthermore, the proposal suggests defining taxation rules for crypto transactions, mandating the reporting of large transactions to the FBR, and offering tax incentives to support blockchain startups.
Learning from Global Practices
ICMAP cited Dubai’s Virtual Assets Regulatory Authority (VARA) as a potential model for Pakistan, highlighting its comprehensive regulatory framework and risk-based licensing approach. The proposal calls for Pakistan to work closely with international regulators and adopt best practices from jurisdictions such as Singapore, the UAE, and the UK.
Additionally, the ICMAP has encouraged the PCC to engage with FATF, consult the International Monetary Fund (IMF) and World Bank, and collaborate with global organizations including the International Organization of Securities Commissions (IOSCO), the Crypto Valley Association (CVA), and the Digital Money Compliance Council (DMCC).
Supporting Blockchain Innovation
The proposal also includes launching public awareness campaigns on cryptocurrency risks and opportunities, supporting blockchain-focused academic programs, and developing investor guidelines to encourage responsible adoption. A research center on blockchain technology, in partnership with leading global institutions, has been suggested to promote innovation.
ICMAP emphasized the importance of Pakistan’s participation in international crypto summits, including Consensus (USA), World Blockchain Summit (Dubai), and Paris Blockchain Week, to ensure representation in shaping global regulatory standards.
Fostering Industry Collaboration
To enhance Pakistan’s crypto landscape, ICMAP has urged authorities to establish a National Crypto & Blockchain Policy that provides legal definitions, supports decentralized finance (DeFi) innovation, and aligns with global standards. Further recommendations include launching accelerator programs with leading blockchain firms, encouraging compliance certifications for cybersecurity, and facilitating strategic partnerships between Pakistani fintech startups and international platforms.
ICMAP noted that Pakistan can benefit from models such as the European Union’s Markets in Crypto-Assets (MiCA) Regulation and the European Central Bank’s (ECB) Digital Euro initiative, which provide a strong legal foundation for digital assets. By prioritizing consumer protection and financial stability, Pakistan can move toward a balanced and effective regulatory framework for cryptocurrency and blockchain innovation.