By Zainab Shafiq 
Pakistan has taken a major step towards reshaping its financial landscape as the State Bank of Pakistan (SBP) confirmed its agreement in principle to legalize digital currencies in the country. The central bank stated that while the advisory banning cryptocurrencies will be withdrawn, a clear regulatory framework must first be finalized before Pakistanis can trade or hold virtual assets officially.
The announcement was made during a Senate Standing Committee on Finance and Revenue session, where Acting Deputy Governor Dr. Inayat Hussain briefed lawmakers on the government’s progress. He added that the move is aimed at balancing financial innovation with strict safeguards against fraud, terror financing, and money laundering.
Virtual Assets Bill 2025: Key Provisions
The government has already introduced the Virtual Assets Bill 2025, designed to regulate digital assets in line with international standards. Under this legislation, a new body, the Pakistan Virtual Asset Regulatory Authority (PVARA), has been established to oversee Virtual Asset Service Providers (VASPs).
Some major highlights include:
- Legal Status: SBP to legalize cryptocurrencies once regulations are in place
- Regulatory Authority: PVARA to license and supervise VASPs
- Oversight Areas: AML/CTF compliance, data protection, insider trading safeguards
- Central Bank Role: Plans to issue a digital rupee
- Global Standards: Alignment with FATF requirements to strengthen Pakistan’s financial credibility
The Senate also discussed the qualifications of PVARA’s leadership, suggesting an age cap of 55 years for the chairperson, alongside at least five years of digital finance experience. Lawmakers stressed the importance of including younger professionals to promote innovation and agility.
Political Dispute And Next Steps
The committee proceedings turned tense when Senator Afnan Ullah Khan accused the government of copying his earlier private member bill on virtual assets. While the dispute remains unresolved, members agreed to consider amendments to Senate rules to avoid similar conflicts in the future.
Once passed, the new law is expected to create a transparent and secure digital finance ecosystem, positioning Pakistan as an emerging participant in the global crypto economy. For many observers, the decision to legalize digital currencies could mark the beginning of a financial revolution in the country.
Also, see:
Senior PTV Actor Anwar Ali Passes Away at 71