The State Bank of Pakistan (SBP) has decided to legalize virtual assets and launch a central bank-issued digital currency. During a briefing to the Senate Finance Committee, Deputy Governor Dr. Inayat Hussain confirmed that the advisory labeling cryptocurrency as illegal will be withdrawn, paving the way for a regulated digital asset framework. He explained that the SBP will exclusively issue a digital rupee, allowing legal transactions of virtual assets.
Highlighting the urgency for regulation, Senator Afnanullah Khan revealed that Pakistanis have already invested about $21 billion in cryptocurrencies. To address this, the proposed Virtual Asset Bill 2025 will establish a nationwide regulatory framework. The bill outlines the creation of a Virtual Asset Regulatory Authority responsible for licensing, oversight, and compliance. According to Barrister Syed Shehroze, virtual assets will be transferable across Pakistan but restricted from being used for direct purchases, services, or unregulated investments.
The legislation includes safeguards for investor protection, anti-money laundering (AML), and counter-terror financing (CTF) compliance in line with FATF standards. The authority’s board will include top government officials, with recommendations for additional parliamentary representation. The Senate Committee also discussed privacy concerns, transaction limits, and transparency measures. Final deliberations on the Virtual Asset Bill 2025 will be held in the next committee session.
For these developmnts, Pakistan Forms Crypto Council Headed by Finance Minister Aurangzeb
