Pakistan has taken a decisive step toward regulating digital finance after the Senate Standing Committee on the Cabinet Secretariat approved the Virtual Assets Bill, 2025. The legislation is aimed at creating a structured regulatory framework for cryptocurrencies and virtual asset services, signaling Pakistan’s intent to formally integrate digital assets into its financial system. The bill, which was endorsed during a meeting chaired by Rana Mahmood-ul-Hassan, seeks to ensure investor protection, promote transparency, and provide comprehensive oversight of virtual asset markets.
At the core of the bill is the establishment of the Pakistan Virtual Asset Regulatory Authority (PVARA), an autonomous corporate body responsible for licensing, regulating, and supervising Virtual Asset Service Providers (VASPs) across the country. Under Section 6 of the proposed legislation, PVARA will have the power to enforce robust safeguards for investors and customers, maintain market integrity, and oversee compliance with conduct-of-business standards. These measures are intended to minimize financial risks linked to digital assets and build trust among market participants.
The Statement of Objects and Reasons attached to the bill highlights the growing importance of virtual assets in the modern financial ecosystem. By introducing a dedicated regulatory body, the legislation aims to encourage innovation while ensuring transparency, secure trading practices, and adherence to global best practices. PVARA will also play a critical role in curbing illegal activities, including money laundering and fraud, thereby enhancing Pakistan’s competitiveness in the global digital economy.
The bill further emphasizes the need for a strong legal framework to combat terrorist financing and other illicit financial activities. In addition, it promotes financial inclusion, economic growth, and the development of Shariah-compliant virtual asset services aligned with international standards. This approach is intended to provide a balanced environment that supports innovation while safeguarding ethical and legal compliance in line with both domestic and international norms.
The committee meeting was attended by Finance Minister Muhammad Aurangzeb, senior government officials, and members including Sherry Rehman, Farooq Naek, Saleem Mandiwalla, Saadia Abbasi, Amir Chishti, Abdul Qadir, Samina Mumtaz Zehri, Jan Muhammad, Waqar Mehdi, and Afnan Ullah Khan. Federal Minister for Parliamentary Affairs Tariq Fazal Chaudhry also briefed the committee on the bill’s regulatory and institutional framework, highlighting its alignment with global standards for digital finance regulation.
During the session, committee members discussed the bill’s role in fostering a secure trading environment, enhancing investor confidence, and establishing Pakistan as a competitive player in the digital asset sector. The approval was widely described as a milestone for the country’s financial ecosystem, reflecting growing institutional acceptance of cryptocurrencies and other digital assets.
The Senate Standing Committee’s endorsement of the Virtual Assets Bill, 2025, is seen as a major step toward formalizing cryptocurrency regulation in Pakistan. By providing clear rules for licensing, supervision, and compliance, the legislation lays the groundwork for a regulated and secure digital asset market while simultaneously addressing risks related to financial crime, market volatility, and operational failures. This framework is expected to encourage innovation in the fintech and blockchain sectors and contribute to the broader growth of Pakistan’s digital economy.
In addition to regulatory oversight, the bill also prioritizes Shariah-compliant virtual asset services, catering to market demands while maintaining ethical standards. Overall, the Virtual Assets Bill 2025 reflects Pakistan’s forward-looking approach to integrating digital finance into its economy while balancing innovation, investor protection, and regulatory compliance.
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