The State Bank of Pakistan (SBP) has announced plans to lift its advisory against cryptocurrencies, paving the way for a regulated framework through the Virtual Asset Bill 2025. The development was shared during a briefing to the Senate Finance Committee, chaired by Senator Saleem Mandviwalla.
Deputy Governor of SBP, Dr. Inayat Hussain, revealed that Pakistan will not only regulate digital assets but also launch its own central bank-backed digital currency, the Digital Rupee. This state-issued currency will serve as the only legal medium for purchasing and holding virtual assets in Pakistan, creating a controlled ecosystem for transactions.
Highlighting the urgency for regulation, Senator Afnanullah Khan disclosed that Pakistanis have already invested nearly $21 billion in cryptocurrencies despite the existing ban. He emphasized the need for a legal structure to safeguard investors and prevent misuse.
According to officials from the Ministry of Law and Justice, the upcoming law will establish a Virtual Asset Regulatory Authority, tasked with licensing, monitoring, and overseeing digital asset transactions nationwide. Barrister Syed Shehroze explained that while virtual assets will be transferable across Pakistan, they cannot be used for buying goods, services, or making investments outside the regulated digital ecosystem.
The proposed authority will include the Governor of SBP, Secretaries of Finance, Law, and IT, along with the Chairpersons of FBR, SECP, and Digital Pakistan, and the DG FIA. The Senate committee has recommended adding a Senator and a Member of the National Assembly to ensure parliamentary oversight.
The draft law includes strict safeguards for data privacy, investor protection, and compliance with FATF, AML, and CTF standards. Board members will be prohibited from insider trading or using sensitive data for personal gain. Funding for the authority will initially come from the government but later shift to licensing fees, penalties, and service charges.
Some senators expressed concerns over the proposed $10,000 transaction cap, calling for its removal. They also suggested imposing service fees on crypto exchanges to generate revenue for the state.
The Senate Finance Committee welcomed the initiative but deferred its final approval to the next meeting, where the Virtual Asset Bill 2025 will be discussed in detail.