Pakistan has taken a landmark step toward regulating digital finance with the Senate Standing Committee on the Cabinet Secretariat unanimously approving the Virtual Assets Bill 2025. The legislation aims to integrate virtual assets into the country’s formal legal and regulatory framework, enhancing transparency, investor protection, and operational oversight of the rapidly evolving digital asset sector.
The Virtual Assets Bill 2025 provides for the creation of a dedicated regulatory authority tasked with supervising Virtual Asset Service Providers (VASPs). This authority will enforce licensing requirements, monitor compliance with regulatory standards, and mitigate financial and operational risks associated with virtual asset transactions. By formalising these structures, Pakistan seeks to align its regulatory approach with emerging global standards in digital finance while fostering trust and stability in its digital economy.
The committee meeting, chaired by Rana Mahmood ul Hassan, involved detailed deliberations on the bill’s scope and institutional framework. Members unanimously endorsed the legislation, describing its approval as a significant milestone for Pakistan’s financial ecosystem and digital economy. Federal Minister for Parliamentary Affairs Tariq Fazal Chaudhry presented the bill, highlighting its role in providing a structured legal environment for virtual assets, which have seen increasing adoption across global markets and within Pakistan’s fintech sector.
The proposed legislation is expected to strengthen investor confidence by establishing clear operational and compliance requirements for VASPs, introducing accountability mechanisms, and reducing vulnerabilities associated with virtual asset trading. Licensing and oversight provisions will ensure that service providers adhere to defined operational standards, limiting exposure to fraud, market manipulation, and other risks commonly associated with digital asset markets.
In addition to the bill’s passage, the committee addressed other pressing issues, including a briefing related to a report by the United Nations fact-finding mission. Members discussed the findings and disposed of the matter following deliberation. The committee also expressed concern over recent flood damage in Sindh and Balochistan, highlighting gaps in disaster-response coordination and urging better allocation of resources to support affected communities.
Observers note that the approval of the Virtual Assets Bill 2025 places Pakistan among a growing number of countries establishing formal regulatory frameworks for digital finance and virtual assets. The legislation is expected to promote responsible innovation in the fintech sector, encourage institutional participation in virtual asset markets, and provide consumers and investors with clearer protections and recourse mechanisms.
By establishing regulatory clarity and robust oversight, the bill positions Pakistan to benefit from the emerging digital economy while managing associated risks. The Senate panel’s approval marks a critical step in the country’s efforts to modernize financial regulation and embrace technological advancements in fintech, crypto, and digital payments ecosystems.
The bill is now set to move forward in the legislative process, paving the way for a structured, transparent, and secure digital asset environment in Pakistan, supporting both local innovation and alignment with international financial standards.
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