The government proposes stringent new cybersecurity regulations for virtual asset service providers.
The government has proposed rigorous new cybersecurity and technology governance regulations for Virtual Asset Service Providers (VASPs), mandating all registered businesses to establish comprehensive security policies and perform regular audits.
The draft framework requires VASPs to formulate, implement, and conduct annual evaluations of their cybersecurity policies under the oversight of a Chief Information Security Officer to guarantee comprehensive protection of electronic systems, client information, and counterparty data.
The proposed draft rules stipulate that these policies must encompass information security, data governance and classification, system and network security, supplier management, incident response, and protections against cyberattacks. Virtual Asset Service Providers must have a thorough technological governance and risk assessment strategy that corresponds with their business model and risk exposure.
The framework will encompass backup controls, capacity planning, system testing, and ongoing monitoring of technological processes. New regulations seek to improve transparency, safeguard data, and deter financial fraud in the virtual asset sector, thereby enhancing consumer confidence.
New regulations will be implemented concerning security protocols and audit obligations to enhance the safety of cryptocurrency activities. According to the proposed regulations, VASPs are required to guarantee the secure generation, transfer, and storage of cryptographic keys and virtual asset wallets.
They must implement improved protections to protect users’ private keys from illegal access, provide continuous access to crypto assets, and inform customers about the hazards linked to illicit data sharing.
Additionally, the standards instruct VASPs to perform third-party security audits of their cryptocurrency platforms.
Mandatory annual risk assessments and comprehensive system testing will be required to ensure protection against hacking and cyberattacks. The government is expected to officially present the Virtual Asset Service Providers Governance and Operations Regulations, designed to enhance oversight and cultivate trust in the cryptocurrency business.
A significant high-level discussion about Pakistan’s National Digital Asset Framework was co-chaired by Finance Minister Muhammad Aurangzeb and PVARA Chairman Bilal bin Saqib. The Governor of the State Bank, bank presidents, and senior executives from Binance were also present.
The meeting meticulously examined the advancements regarding the national framework. Finance Minister Aurangzeb stated that digitizing the payment ecosystem to meet global standards is imperative, noting that the proliferation of digital assets in Pakistan is irreversible.
He observed that blockchain technology might substantially decrease expenses in Pakistan’s annual US$38 billion remittance flow and create new employment prospects in Web3 and blockchain for Pakistani youth. PVARA Chairman Bilal bin Saqib asserted that Pakistan possesses the capacity to establish global digital standards and that digital assets may significantly enhance financial inclusion and access to emerging markets.