The State Bank of Pakistan (SBP) has signaled a major shift in its stance on digital currencies, confirming that Pakistani citizens can now purchase virtual assets. However, a comprehensive regulatory framework is still in the works, according to SBP’s Acting Deputy Governor Dr. Inayat Hussain. He shared these developments with the Senate Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla, during a Wednesday session.
Responding to questions on the current status of cryptocurrency transactions, Dr. Hussain clarified that while virtual asset purchases are now permissible, the legal and institutional structure remains under development. He added that SBP intends to gradually remove existing restrictions on cryptocurrency usage once a formal framework is in place.
The Senate panel deliberated on the “Virtual Assets Bill, 2025,” legislation designed to regulate the digital asset ecosystem in line with global standards. The bill seeks to minimize risks linked to money laundering and terrorist financing, while establishing a formal authority to oversee the sector. The proposed Pakistan Virtual Assets Regulatory Authority (PVARA) is expected to take the lead role in monitoring and regulating virtual asset activity.
Dr. Hussain also revealed that SBP is working on a state-backed digital currency that could eventually be used for trading in virtual assets. However, this rollout depends on passing the PVARA Bill, amending the State Bank of Pakistan Act, and putting in place a clear regulatory system.
In a written briefing, the Finance Division underscored the challenges tied to regulating virtual assets, highlighting concerns around investor protection, market transparency, and the integrity of the financial system. The briefing also emphasized the importance of creating a dedicated regulator for licensing and supervising Virtual Asset Service Providers (VASPs), to encourage innovation while ensuring security in the sector.
To move forward, Pakistan has introduced the Virtual Assets Ordinance 2025, laying the groundwork for licensing VASPs and establishing safeguards against fraud, money laundering, and misuse of virtual platforms. The ordinance also supports the development of Shariah-compliant services, opening opportunities for broader adoption across the financial ecosystem.
The Senate committee debated the placement of the new Virtual Assets Authority, recommending it be housed under the Finance Division rather than the Cabinet Division, given its financial nature. Lawmakers also suggested capping the age of the authority’s chairperson at 55 years, with a requirement of at least five years of experience in digital finance and technology.
Tensions rose when Senator Afnanullah Khan accused the government of copying his private member bill, “The Virtual Assets Bill, 2025,” and repackaging it as an official version. He demanded safeguards to prevent duplication of lawmakers’ work. The committee agreed to review Senate rules to address this concern.
For now, deliberations on the bill have been deferred to the next committee meeting, though momentum toward a regulated digital assets landscape in Pakistan is clearly building. The combination of regulatory reforms, SBP’s openness to innovation, and the creation of PVARA marks a turning point for Pakistan’s financial system as it cautiously embraces the global digital asset economy.
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