The State Bank of Pakistan (SBP) has agreed in principle to declare digital currencies legal in the country. However, a proper regulatory framework is still being finalized before Pakistanis can officially trade and hold cryptocurrencies.
The announcement came during a briefing to the Senate Standing Committee on Finance and Revenue, where Acting Deputy Governor Dr. Inayat Hussain confirmed that SBP will withdraw the advisory banning cryptocurrencies once the legal framework is in place.
The government has introduced the Virtual Assets Bill 2025, which aims to regulate digital assets under global standards. A new body, the Pakistan Virtual Asset Regulatory Authority (PVARA), has been established to license and supervise Virtual Asset Service Providers (VASPs). The authority will also work to curb money laundering, terror financing, and fraud, while encouraging innovation and financial inclusion.
Key Highlights of Virtual Assets Bill 2025
| Feature | Details |
| Legal Status | SBP agrees in principle to legalize cryptocurrencies |
| Regulatory Authority | Pakistan Virtual Asset Regulatory Authority (PVARA) |
| Oversight Areas | Licensing, AML/CTF compliance, market transparency |
| Digital Currency | SBP to issue central bank digital rupee |
| Investor Protection | Data privacy, fraud prevention, insider trading safeguards |
| International Focus | Aligned with FATF and global regulatory practices |
The Senate Committee also discussed qualifications for the new authority’s chairperson, proposing an age limit of 55 years and at least five years of digital finance experience. Lawmakers emphasized including young experts in decision-making roles to ensure innovation.
However, the session turned heated when Senator Afnan Ullah Khan accused the government of copying his private member bill on virtual assets. The committee decided to review the matter and suggested amendments to Senate rules to avoid such disputes in the future.
Once approved, the bill is expected to provide a secure and transparent environment for digital currency transactions, positioning Pakistan as a growing player in the global crypto economy.