Pakistan's Virtual Assets Bill 2025: Regulating Cryptocurrencies and Launching the Digital Rupee
- Abeera Marium Siddiqui
- January 9, 2025
- 11:07 am
- 38
- Business
The Virtual Assets Bill 2025 Pakistan takes a bold step to regulate cryptocurrencies and launch a Digital Rupee pegged to the Pakistani Rupee (PKR). Senator Dr. Afnan Ullah Khan introduced this private member’s bill to establish a clear framework for managing virtual assets, including cryptocurrencies and blockchain technologies.
A key feature of the bill introduces the Digital Rupee, an authorized legal tender directly supervised by central bank regulations. With this framework, the government aims to strengthen financial stability, protect investors, and curb illicit activities by regulating the issuance, trading, and use of virtual assets.
National Virtual Assets Regulatory Commission
The bill creates a National Virtual Assets Regulatory Commission to oversee all aspects of virtual asset management. This commission will license virtual currency exchanges, monitor service providers, and enforce anti-money laundering (AML) and counterterrorism financing (CTF) regulations.
Additionally, it will establish strict transparency measures by requiring regular audits and transaction reporting, which helps foster accountability in Pakistan’s financial ecosystem.
Virtual Asset Zones
To drive innovation, the bill designates specific regions as Virtual Asset Zones. These zones focus on cryptocurrency trading and blockchain projects while utilizing areas with surplus renewable energy or idle power plants. By operating in these zones, businesses will benefit from reduced corporate taxes during their first five years. However, compliance with AML and CTF obligations remains mandatory to access these incentives.
Encouraging Foreign Investment
The government actively encourages global investors by offering three-year tax exemptions to foreign entities supporting local blockchain projects or power plants. Furthermore, it dedicates one-third of the revenue from virtual asset operations to infrastructure development and blockchain education programs. These initiatives aim to boost growth and position Pakistan as a leader in blockchain innovation.
Licensing and Compliance
The bill requires businesses, including virtual currency exchanges and service providers, to secure licenses. Companies must prove financial stability, implement robust cybersecurity measures, and adhere to AML and CTF regulations. They also need to maintain transaction records and customer identification data for at least five years to ensure compliance.
With these measures, Pakistan not only regulates its cryptocurrency market but also creates opportunities for blockchain innovation, transparency, and economic growth.
