ISLAMABAD: The State Bank of Pakistan (SBP) has agreed in principle to grant legal status to digital currency once a comprehensive legal and regulatory framework is finalised.
This was disclosed by SBP Deputy Acting Governor Dr Inayat Hussain, while briefing the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, at the Parliament House on Wednesday.
The Senate panel considered the Virtual Assets Bill 2025 and it would continue its review in the next meeting for granting its assent.
Meanwhile, the Senate panel scrutinised the hefty pay and perks enjoyed by the SECP chairman, commissioners and others. Senator Mohsin Aziz raised the issue of whether the Board of the SECP increased salaries and perks unanimously or there was dissent among the board members. The Senate panel was told that the salary and allowances, including medical and recreational allowances, were granted with a total financial impact that runs into millions of rupees.
On the discussion of the Virtual Assets Bill 2025, the SBP informed that they would withdraw the notification for banning digital currency by declaring the digital currency as legal once the legal and regulatory framework are put in place. The committee deliberated on the Government Bill titled “The Virtual Assets Bill, 2025”.
The Bill aimed to regulate virtual assets following established International practices. It was also informed that the given Virtual Assets Authority will play a key role in combating money laundering, terror financing and other illicit activities.
The Senate panel was informed that virtual assets are an evolving component of the modern financial ecosystem, offering new opportunities for innovation, investment, and economic growth. However, they also present significant regulatory challenges, particularly in ensuring investor protection, market transparency and the integrity of financial systems.
To address these challenges, a dedicated regulatory arm for the licensing and supervision of Virtual Asset Service Providers (VASPs) is essential. Such an oversight mechanism not only safeguards investors but also fosters innovation, mitigates risks of misuse and promotes confidence in the virtual asset market.
Recognising the need for a comprehensive legal and regulatory structure, the Government of Pakistan promulgated the Virtual Assets Ordinance, 2025 on 8 July 2025. Following its promulgation, the Pakistan Virtual Asset Regulatory Authority (PVARA) was established as the primary regulatory body responsible for overseeing the virtual asset sector.
The bill provides a robust legal framework enabling PVARA to license and supervise VASPs, prevent money laundering, terrorist financing and other illicit activities, promote innovation and financial inclusion, encourage the development of Shariah-compliant virtual asset services and align domestic practices with international standards.
While thoroughly examining the bill, the committee recommended that the Virtual Assets Authority should be placed under the Finance Division instead of the Cabinet Division given the nature of the subject.
The committee also set the upper age limit of 55 years with five experience in Digital Finance and Technology for appointment as Chairperson of the Authority. Senator Anusha Rehman said that young people with five years’ experience need to be accommodated instead of parking lot. After an extensive discussion, the committee deferred the deliberations on the Bill till the next meeting.
Earlier, the committee witnessed an exchange of harsh words between Secretary Law and Senator Afnan-Ullah Khan, who accused the government of copying and blocking his private member bill ‘The Virtual Assets Bill, 2025,” and introducing its own bill.