Senate Flags Risks in Pakistan Virtual Assets Bill 2025

In a critical development for Pakistan’s financial and digital future, the Senate Standing Committee on Finance has raised strong concerns over the Virtual Assets Bill 2025, highlighting risks linked to cryptocurrencies, including money laundering and even criminal misuse. The meeting, chaired by Senator Saleem Mandviwalla, stressed that while virtual assets bring opportunities, unregulated use could destabilize the economy.

Pakistan ranks 8th globally in crypto investment, yet most transactions occur through informal hawala and hundi channels. Cryptocurrencies remain in a legal “grey area,” with the State Bank of Pakistan (SBP) issuing only advisories so far. Lawmakers noted both the potential of youth-driven crypto trading and the dangers of unchecked growth without a proper regulatory framework.

During the session, senators expressed concerns about the use of digital assets in kidnapping-for-ransom cases and illegal transfers. The Ministry of Law informed the committee that the bill proposes an independent oversight board of technology, finance, and regulatory experts. Finance Secretary Imdadullah Bosal confirmed that this legislation aims to introduce transparency and anti-money laundering measures.

Senator Dilawar Khan proposed a uniform 5% tax on virtual assets, predicting it could boost compliance and increase revenues by up to 40%. However, Senator Anusha Rahman criticized the inefficiency of customs authorities, citing corruption at trade checkpoints, and questioned whether the bill would address money laundering effectively.

The Senate committee agreed that virtual assets offer economic opportunities but also carry high risks if left unregulated. Lawmakers emphasized the urgent need for balanced regulation to curb misuse while allowing Pakistan to benefit from the growth of digital finance. The debate now moves to whether the Virtual Assets Bill 2025 can strike the right balance between innovation and security.