The State Bank of Pakistan (SBP) has agreed in principle to legalise digital currencies, though a formal regulatory framework is still being developed, according to Acting Deputy Governor Dr. Inayat Hussain. He shared this update with the Senate Standing Committee on Finance and Revenue during a session chaired by Saleem Mandviwalla on Wednesday.
When questioned about the current status of digital asset purchases by Pakistanis, Dr. Hussain confirmed that Pakistani citizens can now buy virtual assets; however, the establishment of the legal framework is pending. He added that SBP plans to withdraw existing restrictions on cryptocurrency use once the framework is set.
The Senate Committee discussed the “Virtual Assets Bill, 2025,” aimed at regulating virtual assets in line with global standards. The bill also seeks to address risks such as money laundering and terrorist financing. The committee was informed that the newly proposed Virtual Assets Authority would play a crucial role in combating illicit activities in the sector.
The SBP also said it is working on launching a new digital currency. It would be used for trading in digital assets. However, this can only happen after the Pakistan Virtual Assets Regulatory Authority (PVARA) Bill is passed, the State Bank of Pakistan Act is amended, and a regulatory framework is established.
A written briefing from the Finance Division highlighted the evolving nature of virtual assets and the regulatory challenges associated with investor protection, market transparency, and financial system integrity. It stressed the need for a dedicated regulatory body to license and supervise Virtual Asset Service Providers (VASPs), ensuring a secure environment for transactions while fostering innovation.
To facilitate this, Pakistan introduced the Virtual Assets Ordinance 2025, followed by the establishment of the Pakistan Virtual Asset Regulatory Authority (PVARA). The ordinance provides a legal framework for licensing VASPs and implementing measures against money laundering and fraud, while also encouraging the development of Shariah-compliant virtual asset services.
The committee also recommended that the Virtual Assets Authority be placed under the Finance Division, rather than the Cabinet Division, given its relevance to financial matters. Additionally, a proposal was made to set the upper age limit for the authority’s chairperson at 55 years, with five years of experience in digital finance and technology.
In a heated exchange, Senator Afnanullah Khan accused the government of duplicating his private member bill, “The Virtual Assets Bill, 2025.” He alleged that the government had copied his bill’s ideas and introduced its own version. The committee decided to review and introduce amendments to Senate rules to prevent such practices in the future.
The committee deferred further deliberations on the bill until its next meeting.
