The Senate on Wednesday took a major step to regulate digital finance by approving the Virtual Assets Bill 2025, aiming to bring virtual currencies under formal oversight.
The bill, endorsed unanimously by the Standing Committee on the Cabinet Secretariat, will establish a legal framework for cryptocurrencies and other virtual assets. Until now, the market operated largely unregulated, raising concerns over financial crime and investor protection.
Under the legislation, the Pakistan Virtual Asset Regulatory Authority (PVARA) will be formed as an autonomous body to license and supervise virtual asset service providers. This includes cryptocurrency exchanges, digital wallets, and platforms dealing with other forms of digital currency. The authority will enforce rules to safeguard investors and maintain transparency in digital currency operations.
Section 6 of the bill emphasizes customer protection and strict compliance measures. The authority will have the power to set standards for the conduct of business, monitor transactions, and ensure service providers operate within legal limits. Officials said these measures will align Pakistan with global standards for virtual currency regulation.
Senator Rana Mahmoodul Hassan, who chairs the committee, described the bill as a “milestone” for Pakistan’s financial and digital economy. Lawmakers highlighted that regulated digital currencies can promote innovation while reducing risks like money laundering and market manipulation.
Experts say formal regulation of virtual currency trading will help attract investment and enhance confidence among local and international users. Licensing and compliance mechanisms are expected to prevent misuse of digital currency and strengthen the overall financial ecosystem.
The bill signals Pakistan’s commitment to modernizing its financial sector. As cryptocurrencies and other digital currencies continue to grow globally, the new framework ensures that the country keeps pace with international developments while protecting investors.
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With the approval of the Virtual Assets Bill 2025, Pakistan is now set to formally regulate virtual currencies, bringing clarity, transparency, and legal safeguards to the digital finance market.
