Senate committee proposes banning virtual asset regulators from investing in crypto

ISLAMABAD: The Senate Standing Committee on Finance and Revenue has proposed barring members and employees of the Pakistan Virtual Asset Regulatory Authority (PVARA) from investing or trading in virtual assets, as part of its review of the government’s Virtual Assets Bill 2025.

In a meeting held on Wednesday, the committee also recommended shifting the regulatory authority from the Cabinet Division to the Finance Division to ensure better oversight.

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The committee also made several recommendations to improve the proposed regulatory framework. These include setting clear eligibility criteria for PVARA’s leadership, requiring at least five years of relevant experience and an age cap of 55 years for members and the chairman.

Senator Afnanullah urged the inclusion of strict data protection provisions and proposed holding service providers accountable for any violations of user privacy.

Committee members Senator Mohsin Aziz and Senator Mandviwalla raised concerns over a proposed $10,000 cap on virtual asset transactions. They argued that such a restriction may be unnecessary if the government is serious about building a robust and regulated crypto ecosystem.

The government has already taken initial steps by issuing a presidential ordinance on July 8 to establish PVARA as an independent regulator for virtual assets and service providers. The new authority is expected to enforce compliance with international standards, particularly those outlined by the Financial Action Task Force (FATF), with the goal of preventing money laundering and terrorism financing.

According to the bill, the regulator’s board will consist of senior government officials, including the Governor of the State Bank of Pakistan, and secretaries from the finance, law, and IT ministries. The heads of the SECP, FBR, and Digital Pakistan Authority will also sit on the board, along with two independent directors with expertise in relevant fields such as finance, law, or technology.

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PVARA will oversee a comprehensive licensing regime for all individuals and companies offering virtual asset services in Pakistan. Licensees will be required to meet strict operational, compliance, and reporting standards.

The bill also aims to align the regulatory structure with Islamic financial principles by mandating the establishment of a Sharia Advisory Committee to ensure that all virtual asset offerings are compliant with Sharia law.