Senate panel backs Virtual Assets Bill 2025 to regulate digital currency
The market capitalization of digital currencies has increased by around 95 per cent to $106 billion. PHOTO: REUTERS
The Senate on Wednesday took a significant step towards regulating the country’s digital finance landscape by approving the Virtual Assets Bill 2025.
The Standing Committee on the Cabinet Secretariat unanimously endorsed the legislation to bring virtual assets and cryptocurrencies into a formal legal framework after years of unregulated activity.
Under the bill, a regulatory authority will be established to licence and supervise virtual asset service providers, including cryptocurrency exchanges and digital wallets, with a focus on improving investor protection and market transparency.
Read: Govt forms authority to regulate virtual assets
Section 6 of the bill calls for the establishment of the Pakistan Virtual Asset Regulatory Authority, an autonomous body which is empowered to license, supervise and regulate virtual asset service providers in Pakistan.
According to the bill, the authority would be empowered to “protect customers and investors dealing in virtual assets by establishing and enforcing appropriate safeguards and conduct of business requirements.”
Formal regulation
Until now, Pakistan’s virtual asset market has operated without proper oversight, with regulators and lawmakers questioning how to balance innovation with risks such as money laundering and financial crime.
Read more: Ordinance issued to regulate virtual assets
The legislation is intended to create mechanisms for customer safeguards and transparency in trading and compliance with international standards. Officials said that licensing requirements and conduct rules will address previous concerns over unregulated digital currency trading.
Members of the committee, chaired by Senator Rana Mahmoodul Hassan, described the measure as a milestone in developing Pakistan’s financial ecosystem and digital economy.