The Senate of Pakistan has given its approval to the Virtual Assets Bill 2025, marking a significant step toward establishing a comprehensive and permanent legal framework for the regulation of cryptocurrencies and other digital assets in the country. The legislation, which now moves to the National Assembly for approval before being sent to the President for assent, provides statutory backing for the Pakistan Virtual Assets Regulatory Authority (PVARA). The authority had been operating under an ordinance first introduced in July of the previous year. With the ordinance set to lapse in early March, there was an urgent need for a full legal framework to ensure continuity in oversight, licensing, and enforcement within the rapidly evolving virtual assets ecosystem.
The bill was introduced by the finance minister and taken up immediately after the suspension of rules in the Senate, reflecting the government’s priority to solidify digital asset regulation. It aims to create a robust, transparent, and investor‑focused regulatory regime that brings cryptocurrencies such as Bitcoin and Ethereum, stablecoins, digital tokens, and other forms of blockchain‑based instruments under a clearly defined legal structure. The sweeping legislation is designed to govern the issuance, trading, transfer, and use of these virtual assets across electronic networks in Pakistan.
Under the provisions of the bill, PVARA will function as an autonomous corporate body with broad authority to issue licences to virtual asset service providers (VASPs), impose administrative penalties, and prescribe risk management and cybersecurity standards. The authority will also be empowered to suspend or revoke licences of entities that fail to comply with regulatory requirements. In addition, the bill grants PVARA the ability to frame regulations, directives, and operational guidelines for the sector, ensuring that Pakistan’s virtual assets market operates in line with international best practices.
Investor protection, market transparency, and compliance with global anti‑money laundering (AML) and counter‑terror financing (CFT) standards are central themes of the law. To that end, the authority will be tasked with coordinating efforts with other key institutions, including the Financial Monitoring Unit, the National Anti‑Money Laundering and Counter Financing of Terrorism Authority (NAMLCFTA), the State Bank of Pakistan, and other relevant agencies to prevent illicit activities tied to virtual assets. This inter‑agency collaboration is expected to strengthen enforcement and monitoring mechanisms across the financial sector.
The governance structure of the authority has been carefully outlined in the bill. PVARA will be headed by a chairperson appointed by the federal government and will include senior representatives from the finance and law ministries, the governor of the State Bank of Pakistan, the chairperson of the Securities and Exchange Commission of Pakistan, the head of NAMLCFTA, the chairperson of the Pakistan Digital Authority, and two independent directors with expertise in digital finance and technology. Non‑ex officio members will serve three‑year terms, with the possibility of one renewal, ensuring both continuity and periodic infusion of fresh expertise.
The bill introduces strict penalties for non‑compliance with regulatory requirements. Operating without a licence could result in imprisonment of up to five years, a fine of up to Rs50 million, or both. Entities conducting initial virtual asset offerings (IVAs) in violation of the law could face imprisonment of up to three years or a fine of up to Rs25 million. The legislation also incorporates provisions aimed at curbing market manipulation and insider trading within the virtual assets market.
To ensure due process, the bill provides for the establishment of a Virtual Assets Appellate Tribunal tasked with hearing appeals against decisions made by the regulatory authority. Aggrieved parties will have 30 days from the date of an order to file an appeal, offering a structured legal recourse mechanism within the virtual assets regulatory framework.
With the Senate’s approval, Pakistan moves closer to implementing one of the most detailed and structured virtual assets regulatory regimes in the region. The legislation is widely seen as a move to attract responsible innovation and investment in the digital assets space while reinforcing safeguards against financial crime and protecting market participants.
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