Senator Blocked from Proposing Bill to Regulate Cryptocurrencies in Pakistan

Islamabad: The Virtual Assets Bill 2025 , proposed by Senator Dr. Afnan Ullah Khan, was blocked in the Senate after Law Minister Azam Nazeer Tarar highlighted the constitutional provision granting only the federal government the right to propose such legislation.

Following the Law Minister’s statements, the Senate Deputy Chairman postponed the measure. The bill’s future remains unknown unless the federal government initiates consideration on the Senate floor.

The Virtual Assets Bill 2025 aims to establish a comprehensive regulatory framework for virtual assets in Pakistan. Key provisions of the bill include:

• Digital Rupee Introduction: The measure introduces the Digital Rupee, connected to the PKR and issued by the central bank. Such a digital currency would be legally recognized as a valid currency, hence improving transaction security and efficiency.
• Virtual Asset Zones: Designated areas would facilitate cryptocurrency trade and management. Such zones are intended to help financial sustainability and investor protection while also addressing negative phenomena such as money laundering and terrorism financing.
• National Virtual Assets Regulatory Commission: Every separate Virtual Asset Zone, exchange, and service providing would be required to register and obtain a license through a newly established commission. This body would ensure the implementation of AML/CTF laws and set penalties more frequently for enforcement agencies to audit and penalize violators.

The bill also addresses concerns of transparency and responsibility, establishing regulations for regular audits and reporting for all organizations that participate in the virtual asset market. It intends to build a robust framework for governing and regulating digital assets in Pakistan to encourage the development of such products while also protecting investors and the economy.