Pakistan Moves to Regulate Cryptocurrencies and Introduce Digital Rupee under Virtual Assets Bill 2025

Islamabad– TheSenate of Pakistanis set to deliberate on theVirtual Assets Bill 2025, introduced as a private member’s bill bySenator Dr. Afnan Ullah Khan. The proposed legislation aims to regulate virtual assets, including cryptocurrencies and blockchain-based technologies, while also paving the way for the introduction of aDigital Rupeebacked by the Pakistani Rupee (PKR). The Virtual Assets Bill 2025 seeks to: Additionally, the bill outlines comprehensive guidelines for the registration and licensing of virtual currency exchanges, virtual asset providers, and virtual asset zones, while mandating strict compliance withanti-money laundering (AML)andcounterterrorism financing (CTF)regulations. If enacted, the bill proposes the establishment of aNational Virtual Assets Regulatory Commissionto: The federal and provincial governments will designate specific regions asVirtual Asset Zones, prioritizing areas with underutilized or surplus renewable energy capacity. The commission will maintain a public register of licenses for these zones, including application statuses, enforcement actions, and revoked licenses. The bill mandates that virtual currency exchanges and service providers acquire licenses by: The government plans to offer significant tax incentives to promote growth in the virtual assets sector: To enhance transparency in the virtual currency market, the bill requires regular audits and reporting from entities involved in virtual asset management and trading. This approach aims to build trust and ensure accountability within Pakistan’s financial system. The Senate’s consideration of theVirtual Assets Bill 2025marks a significant step toward embracing blockchain technology and cryptocurrencies in Pakistan, while ensuring regulatory oversight to protect investors and maintain financial stability.