Virtual currencies and money laundering: existing and prospects for jurisdictions that comprehensively prohibited virtual currencies like Pakistan

Purpose This study aims to examine the Financial Action Task Force’s recommendations on virtual currencies (VCs) and how Pakistan has responded to them. Design/methodology/approach Qualitative document and jurisprudence analysis techniques were used to achieve the study’s goal. Findings According to this study, VCs are modern FinTech that no jurisdiction can ignore. However, Pakistan has not adopted regulations to govern VCs but comprehensively prohibits their use. It is primarily due to the apathy of various regimes and regulators. Furthermore, the geographical location, undocumented economy and rampant corruption could facilitate the abuse of VCs for money laundering. Originality/value This study has provided a significant overview for developing regulations for VCs in Pakistan and other developing jurisdictions with the same characteristics.