A Senate committee in Pakistan was told on Wednesday that cryptocurrency is increasingly being used for ransom payments, with kidnappers shifting away from cash demands. Senator Mohsin Aziz revealed this trend during a meeting of the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, which reviewed the “Virtual Asset Bill 2025.” The disclosure raised concerns over the unregulated nature of digital assets in the country and their potential misuse for illicit activities.
Deputy Governor of State Bank informed the committee that cryptocurrency is not illegal but exists in a “grey” area under current regulations. Mandviwalla questioned how crypto dealings could be considered grey when they were conducted through hawala and hundi networks, which are already illegal. He also highlighted that Pakistan ranks eighth globally in crypto investment, underscoring the urgency of the Virtual Asset Bill 2025 to establish oversight and transparency. Finance Secretary Imdadullah Bosal told the panel that, so far, there had been no regulation of virtual assets, and the government intended to use this bill to bring clarity to the market while mitigating money laundering risks.
A consultant from the Law Ministry briefed the committee on the structural aspects of the legislation, explaining that an independent board would be established under the bill. The board’s members would be required to have expertise in technology, finance and regulatory affairs to effectively monitor the fast-evolving digital asset sector. This, according to the officials, would help ensure both consumer protection and compliance with international financial standards. The committee’s discussions reflected growing concerns over digital asset transactions and the lack of a formal regulatory framework in Pakistan.
During the same session, Senator Dilawar Khan raised issues about the taxation regime, criticising multiple levies such as sales tax and super tax, which he said were stifling business activity. He proposed that a uniform five percent tax could increase overall revenue collection by 40%, cautioning against risky policy experiments that could further strain the economy. The committee also debated the role of customs in trade oversight. Mandviwalla objected to placing the Trade Development Authority of Pakistan (TDAP) under customs, while Finance Secretary Bosal argued that there was a close operational link between the two bodies. Senator Anusha Rehman challenged the claim that customs effectively facilitates traders, citing persistent complaints about 23 checkpoints between Quetta and Taftan as evidence of inefficiency in the system.
The session underscored the government’s intent to address gaps in financial regulation, particularly as digital assets grow in popularity and usage in Pakistan. It also reflected broader tensions over taxation, trade facilitation, and oversight of emerging technologies, with lawmakers seeking to balance innovation with the need to prevent financial crimes and protect legitimate economic activity.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
