The use of cryptocurrency for ransom payments in Pakistan is on the rise, senators were told during a meeting of the Senate Standing Committee on Finance. The disclosure came as lawmakers reviewed the “Virtual Asset Bill 2025,” legislation designed to regulate digital assets, introduce oversight mechanisms, and address financial risks tied to crypto transactions.
Senator Mohsin Aziz revealed that kidnappers are no longer demanding cash payments in abduction cases and have shifted to using cryptocurrencies instead. The committee, chaired by Senator Saleem Mandviwalla, took note of the seriousness of this development as it considered the broader implications of virtual asset regulation.
Deputy Governor of the State Bank of Pakistan briefed the committee, clarifying that cryptocurrency is not outright illegal in the country but currently operates in a “grey” area without clear regulatory oversight. Mandviwalla questioned this stance, arguing that if crypto transactions are being carried out through hawala and hundi systems—which are banned in Pakistan—then they cannot be categorized as grey. He further pointed out that Pakistan ranks eighth globally in terms of cryptocurrency investment, highlighting the urgency of introducing a robust regulatory framework.
Finance Secretary Imdadullah Bosal stated that virtual assets have so far remained outside the scope of formal regulation. He stressed that the new bill seeks to bring transparency to this sector, while also examining its potential risks, particularly money laundering. A legal consultant informed the committee that the proposed legislation would establish an independent regulatory board. This body would be composed of experts in technology, finance, and regulatory affairs, tasked with ensuring responsible oversight of digital asset activity.
The session also touched on issues of taxation and broader financial governance. Senator Dilawar Khan criticized the current tax system, noting that multiple levies such as sales tax and super tax were constraining growth. He proposed introducing a uniform 5 percent tax rate, suggesting that such a reform could increase revenues by as much as 40 percent. He cautioned, however, that economic improvement required consistent and carefully considered policies, not abrupt experiments.
The committee further discussed customs and trade-related responsibilities. Senator Mandviwalla voiced objections to placing the Trade Development Authority of Pakistan (TDAP) under the control of customs, whereas the finance secretary argued that both bodies shared close operational linkages. Senator Anusha Rehman also weighed in, criticizing claims that customs facilitated trade. She highlighted the persistent complaints from traders, citing the existence of 23 checkpoints between Quetta and Taftan as a major hurdle.
The debates around the Virtual Asset Bill 2025 reflect growing recognition of both the opportunities and challenges posed by cryptocurrencies in Pakistan. While adoption has surged, particularly among investors, concerns around ransom payments, money laundering, and regulatory ambiguity have underscored the urgency of reform. The outcome of the bill is likely to shape Pakistan’s approach to digital finance for years to come.
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