ISLAMABAD: Pakistan is moving closer to giving legal recognition to digital currency under the new Virtual Assets Bill 2025. The State Bank of Pakistan (SBP) confirmed that it has agreed in principle to lift the ban on digital currency once a strong legal and regulatory structure is in place.
This assurance came from SBP Deputy Acting Governor Dr. Inayat Hussain during a briefing to the Senate Standing Committee on Finance. The meeting, held at Parliament House under the chairmanship of Senator Saleem Mandviwalla, discussed the new framework for virtual assets. The committee reviewed the draft legislation and announced that its detailed consideration will continue in the next sitting before final approval.
At the same meeting, senators examined the salaries and perks of the SECP chairman, commissioners, and other senior officials. Senator Mohsin Aziz questioned whether the Board of SECP had unanimously approved the high pay packages or if there had been dissent. The panel was informed that the total cost of salaries, medical benefits, and recreational allowances runs into millions of rupees.
Discussing the Virtual Assets Bill 2025, the SBP made it clear that once the comprehensive framework is approved, the earlier notification banning cryptocurrencies will be withdrawn. This will allow digital assets to function legally in Pakistan. The committee further studied the Government Bill titled The Virtual Assets Bill 2025.
The Bill is designed to regulate cryptocurrencies and virtual assets in line with global best practices. It seeks to ensure that the new Pakistan Virtual Asset Regulatory Authority (PVARA) plays a central role in stopping money laundering, terror financing, and other financial crimes.
The committee was briefed that virtual currencies are an emerging part of today’s global financial system. They create fresh opportunities for investment, innovation, and economic growth. However, they also bring challenges such as investor protection, market transparency, and safeguarding financial integrity.
To deal with these challenges, the government has proposed a strong oversight arm that will license and monitor Virtual Asset Service Providers (VASPs). This move will protect investors, build public trust, reduce risks of misuse, and encourage safe innovation in the virtual asset industry.
The government had earlier promulgated the Virtual Assets Ordinance 2025 on July 8. This ordinance led to the formation of the Pakistan Virtual Asset Regulatory Authority, which is now the key body responsible for regulating digital currencies and virtual financial services.
The Virtual Assets Bill 2025 gives PVARA the powers to license and regulate VASPs, combat financial crimes, promote financial inclusion, and encourage Shariah-compliant digital products. It also ensures that Pakistan’s system aligns with international standards.
While reviewing the draft, senators recommended placing the Virtual Assets Authority under the Finance Division instead of the Cabinet Division, considering the nature of the subject. They also proposed that the chairperson of the authority should not be older than 55 years and must have at least five years of experience in digital finance and technology. Senator Anusha Rehman stressed that young professionals with relevant expertise should be encouraged instead of only appointing senior bureaucrats.
The Senate panel decided to continue discussions in the next meeting after thorough debate. The session also witnessed an exchange of harsh words between Secretary Law and Senator Afnan-Ullah Khan, who accused the government of copying his private member bill on virtual assets and replacing it with its own draft.
