Ban on crypto trading in Pakistan is still in place: Dr. Inayat
ISLAMABAD: The State Bank of Pakistan (SBP) has approved legalization of digital currencies, marking a major step toward integrating virtual assets into the country’s financial system. Acting Deputy Governor Dr. Inayat Hussain announced this today during a briefing to the Senate Standing Committee on Finance and Revenue.
The committee, chaired by Senator Saleem Mandviwalla, reviewed the Government Bill titled “The Virtual Assets Bill, 2025.”
When asked whether Pakistanis could now purchase virtual assets, Dr. Hussain confirmed that the SBP had agreed to legalize them, adding that a comprehensive regulatory framework was being developed. He further clarified that existing prohibitions on cryptocurrency usage would be withdrawn once the new system is in place.
The Virtual Assets Bill, 2025 aims to align Pakistan’s policies with international practices while ensuring robust safeguards against financial crimes. The legislation emphasizes the role of a newly established Virtual Assets Authority in combating money laundering, terror financing, and other illicit activities.
A briefing by the Finance Division highlighted that virtual assets are an integral part of the modern financial ecosystem, presenting both opportunities and challenges. They offer innovation, investment avenues, and economic growth potential but also pose risks related to investor protection, transparency, and financial integrity. To address these concerns, the Pakistan Virtual Asset Regulatory Authority (PVARA) was created under the Virtual Assets Ordinance, 2025, promulgated on July 8, 2025.
PVARA is tasked with licensing and supervising Virtual Asset Service Providers (VASPs), promoting Shariah-compliant virtual asset services, and ensuring compliance with global standards. This framework is expected to provide a secure and transparent environment for digital transactions, boost investor confidence, and strengthen Pakistan’s position in the global digital economy.
The Senate Committee suggested placing the Virtual Assets Authority under the Finance Division instead of the Cabinet Division, considering its financial nature. It also recommended setting an upper age limit of 55 years, along with at least five years of experience in digital finance and technology, for the authority’s chairperson.
The meeting also witnessed tensions when Senator Afnanullah Khan accused the government of blocking his private member bill on virtual assets and replacing it with its own version. After an extensive debate, the committee postponed further deliberations until its next meeting.
