The State Bank of Pakistan (SBP) has announced plans to legalize virtual assets and introduce a central bank-backed digital currency as part of the proposed Virtual Asset Bill 2025.
During a briefing to the Senate Finance Committee, chaired by Senator Saleem Mandviwalla, SBP Deputy Governor Dr. Inayat Hussain confirmed that the advisory declaring cryptocurrency illegal will soon be withdrawn. He revealed that the central bank is actively working on a digital rupee, which will serve as the only legal digital currency for purchasing virtual assets under a regulated framework.
Senator Afnanullah Khan highlighted that Pakistanis have already invested nearly $21 billion in cryptocurrencies, emphasizing the urgent need for proper regulation.
The bill proposes the establishment of a Virtual Asset Regulatory Authority to oversee licensing, regulation, and monitoring of digital assets. The authority’s board will include the Governor of the SBP, federal secretaries of Finance, Law, and IT, as well as chairpersons of the SECP, FBR, and Digital Pakistan, alongside the DG FIA. Lawmakers have suggested adding members of the National Assembly and Senate to strengthen oversight.
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Key provisions include investor safeguards, data privacy protections, and strict measures to prevent money laundering and terror financing, aligned with FATF, AML, and CTF standards. While virtual assets will be transferable nationwide, they cannot be used for direct payments, goods, or services outside the regulated ecosystem.
The Senate Finance Committee also debated transaction limits, data privacy concerns, and the role of service providers in ensuring transparency. The bill will be funded initially by the Government of Pakistan, with future revenues generated through licensing fees and penalties.
With the upcoming digital rupee and regulated framework for cryptocurrencies, Pakistan is preparing to create a secure, transparent, and compliant environment for digital financial assets. Further discussions on the Virtual Asset Bill 2025 will continue in the committee’s next meeting.
