Senate passes Virtual Assets Bill 2025 to regulate cryptocurrencies, digital assets

The Senate of Pakistan has approved the Virtual Assets Bill, 2025, clearing the way for a permanent legal framework to regulate cryptocurrencies and other digital assets in Pakistan. The legislation provides statutory backing to the Pakistan Virtual Assets Regulatory Authority (PVARA), which had been established through an ordinance in July last year. 

With the ordinance set to lapse in early March, the bill ensures continuity of the authority’s regulatory mandate.

The bill was taken up for immediate consideration after suspension of rules and was moved by the finance minister. It seeks to create a comprehensive framework for licensing, regulating and supervising virtual assets and virtual asset service providers to ensure investor protection, market transparency and compliance with international standards on anti-money laundering and counter-terror financing.

Virtual assets under the law include cryptocurrencies such as Bitcoin and Ethereum, stablecoins, digital tokens and other blockchain-based instruments that can be traded, transferred or used for payments and investments through electronic networks.

Under the bill, PVARA will function as an autonomous corporate body with powers to issue, suspend or revoke licences, prescribe risk management and cybersecurity standards, and impose administrative penalties. It will also frame regulations, directives and guidelines governing the sector.

The authority will coordinate with the Financial Monitoring Unit, the National Anti-Money Laundering and Counter Financing of Terrorism Authority, the State Bank of Pakistan and other relevant agencies to prevent illicit activities linked to virtual assets.

The body will comprise a chairperson appointed by the federal government, senior representatives from the finance and law ministries, the governor of the State Bank of Pakistan, the chairperson of the Securities and Exchange Commission of Pakistan, the head of the National Anti-Money Laundering and Counter Financing of Terrorism Authority, the chairperson of the Pakistan Digital Authority and two independent directors with expertise in digital finance and technology. Non-ex officio members will serve three-year terms, renewable once.

The bill prescribes penalties for operating without a licence, including imprisonment of up to five years, a fine of up to Rs50 million or both. Conducting an initial virtual asset offering in violation of the law may lead to imprisonment of up to three years or a fine of up to Rs25 million. Provisions addressing market manipulation and insider trading have also been included.

It also provides for the establishment of a Virtual Assets Appellate Tribunal to hear appeals against decisions of the regulatory authority. Aggrieved parties may file appeals within 30 days of an order.

The bill will now be sent to the National Assembly for approval before being forwarded to the president for assent.