The Senate on Wednesday approved the Virtual Assets Bill 2025, marking a formal move to regulate Pakistan’s fast growing digital finance landscape. The Standing Committee on the Cabinet Secretariat unanimously endorsed the legislation, bringing cryptocurrencies and other virtual assets under a structured legal framework after years of operating in a largely unregulated environment. The development signals a shift in policy direction as lawmakers attempt to integrate emerging financial technologies into the formal economy while addressing long standing concerns over oversight and compliance.
A central feature of the legislation is the establishment of the Pakistan Virtual Asset Regulatory Authority, an autonomous body tasked with licensing, supervising and regulating virtual asset service providers across the country. Under Section 6 of the bill, the authority will oversee cryptocurrency exchanges, digital wallet operators and other related platforms, ensuring that they adhere to defined conduct of business standards. The body has been empowered to protect customers and investors dealing in virtual assets by enforcing safeguards, promoting transparency in trading activities and aligning market practices with international regulatory expectations. Officials said the framework is designed to improve investor confidence while reducing systemic risks associated with digital asset transactions.
Until now, Pakistan’s virtual asset ecosystem has functioned without comprehensive regulatory supervision, despite growing public participation in cryptocurrency trading and blockchain based services. Policymakers and financial authorities have repeatedly debated how to balance innovation with the risks of money laundering, illicit financial flows and consumer exploitation. The newly approved bill seeks to address those gaps by introducing licensing requirements, compliance mechanisms and operational guidelines for service providers. Committee members noted that formal regulation would not only enhance market transparency but also position Pakistan to engage more effectively with global financial standards related to digital assets.
The committee, chaired by Senator Rana Mahmoodul Hassan, described the legislation as a milestone for the country’s financial ecosystem and broader digital economy. By institutionalising oversight and setting clear rules for virtual asset businesses, lawmakers aim to encourage responsible innovation while safeguarding investors. The approval of the Virtual Assets Bill 2025 reflects the government’s broader efforts to modernise financial governance and integrate emerging technologies into Pakistan’s regulated economic framework.
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