Pakistan’s Central Bank Is Finally Making a Move on Crypto 😲
Pakistan’s Digital Currency Initiative and Crypto Regulation
In a major shift in policy, the State Bank of Pakistan (SBP) is now moving to regulate digital assets and create its own central bank digital currency (CBDC). This announcement came during a meeting with the Senate Finance Committee, where Deputy Governor Dr. Inayat Hussain confirmed that a previous advisory banning cryptocurrencies would be removed.
The SBP is currently working on developing a digital rupee. This new digital currency will be the only official way to legally purchase virtual assets in the country, providing a regulated and secure path for these types of transactions.
This change is a direct response to the massive amount of money already in the crypto market in Pakistan. Senator Afnanullah Khan shared that Pakistani citizens have invested an estimated $21 billion in cryptocurrencies, highlighting the urgent need for a proper legal framework to manage this activity.
A New Bill to Regulate Digital Assets
A new piece of legislation, the Virtual Asset Bill 2025, is being drafted to support this new ecosystem. According to legal experts, this bill will create a Virtual Asset Regulatory Authority to oversee licensing, set up rules, and keep an eye on digital assets. Barrister Syed Shehroze explained that under the new law, virtual assets will be usable and transferable across Pakistan. However, they will be restricted to a specific, regulated ecosystem. This means you won’t be able to use them for everyday purchases like groceries or for general investments outside of the authorized system.
The bill also includes strong measures to protect consumers and prevent illegal financial activities, like money laundering and terror financing, aligning with international standards from organizations like the FATF.
The new Virtual Asset Regulatory Authority will be a powerful group, with its board including key figures like the head of the SBP, senior secretaries from the ministries of Finance, Law, and IT, and the heads of the FBR and SECP. The Director General of the FIA will also be a part of this board, ensuring strong oversight. The Senate Finance Committee has suggested adding a Member of the National Assembly and a Senator to the board and has also put forward some ideas for the new authority’s chairman, including a minimum of five years of experience and a maximum age of 55.
Initial funding for the new authority will come from the government. Future revenue will be generated from licensing fees, penalties, and other charges.
While the Senate Finance Committee generally supports this new direction, they have decided to hold off on finalizing the details of the bill for a future meeting to make sure everything is just right.
