Is cryptocurrency being introduced in Pakistan?

ISLAMABAD: The federal government has started reviewing proposals to introduce regulations for cryptocurrency and blockchain technology in Pakistan.

To materialise the proposals, new legislation will be tabled in the parliament.

The federal government plans to present the “Virtual Assets Bill 2025” to formulate cryptocurrencies and blockchain technology laws.

According to a local channel, Dr. Afnan Ullah Khan, a senator from the ruling Pakistan Muslim League-Nawaz (PML-N), has introduced a private member’s bill named the “Virtual Assets Bill 2025.”

The proposed legislation aims to regulate the use, trade, and compliance of cryptocurrencies and virtual assets.

Additionally, it seeks to introduce a digital currency backed by the Pakistani Rupee, which will be granted legal status under State Bank regulations.

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The bill aims to bring the issuance, trading, and use of virtual assets within a legal framework. It also proposes establishing “Virtual Asset Zones” to ensure financial stability, protect investors, prevent illegal activities, and grant legal status to the digital rupee.

Sources further disclosed that the bill includes standards and guidelines for registering and licensing virtual currency exchanges, virtual asset providers, and virtual currency zones. It mandates compliance with anti-money laundering and counter-terrorism financing laws.

To ensure transparency in the virtual currency market, the bill proposes implementing regular audits and reporting systems for all relevant entities, to build public trust in the financial system.

It also includes a proposal to establish a “National Virtual Assets Regulatory Commission.”

The commission will assess the utility, risks, and weaknesses of virtual assets and develop a legal and regulatory framework for their management in the country.

It will oversee the registration and monitoring of virtual asset zones, currency exchanges, and virtual asset service providers.

Additionally, it will evaluate and maintain the standards of virtual assets issued under the backing of the Pakistani Rupee and impose penalties for violations.