Pakistan sets stage for digital finance revolution with Virtual Assets Bill 2025

September 03, 2025 (MLN): Pakistan is preparing to enter the digital finance era as the government moves toward legalizing cryptocurrency transactions and introducing its own central bank digital currency (CBDC) under the proposed Virtual Assets Bill 2025.

The development came during a Senate Standing Committee on Finance meeting, chaired by Senator Saleem Mandviwalla, where State Bank of Pakistan (SBP) Deputy Governor outlined the central bank’s blueprint for digital assets.

Once passed, the legislation will empower the SBP to issue digital currency accounts and regulate virtual assets through a dedicated framework.

Under the proposed system, Pakistanis will be able to convert traditional rupees into digital currency via licensed exchanges.

These exchanges will also provide platforms for trading in cryptocurrencies such as Bitcoin, which until now operated in a regulatory grey zone.

The bill also envisions the establishment of a Virtual Assets Authority to oversee the sector, along with the launch of a virtual currency exchange to streamline digital asset transactions.

This represents a significant policy shift for Pakistan, which had previously restricted cryptocurrency use due to concerns related to money laundering and financial stability.

SBP officials, however, assured lawmakers that the new initiative will complement rather than replace traditional banking, with commercial banks continuing to operate alongside digital finance.

Lawmakers debated provisions of the bill, including whether the Virtual Assets Authority should fall under the Finance Division or Cabinet Division.

A proposal was also floated requiring the future head of the planned Digital Finance and Technology Authority to be at least 55 years old with five years of relevant expertise. Further deliberations were deferred to the committee’s next session.

Separately, the committee addressed a dispute involving the Securities and Exchange Commission of Pakistan (SECP), which had come under scrutiny for authorising salary and benefit increases without prior approval from the Finance Division.

Senator Anusha Rehman termed the move a breach of protocol. SECP Chairman Akif Saeed defended the decision, stating that the revisions were the first since 2019 and appeared significant due to their cumulative nature.

Senator Mandviwalla clarified that the SECP policy board holds the legal authority to approve such adjustments.

Analysts view the Virtual Assets Bill 2025 as a landmark step toward modernizing Pakistan’s financial ecosystem, boosting fintech adoption, and attracting blockchain-related investment in line with global trends.

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