A New Era for Crypto Regulation in Pakistan- Senate Passes Virtual Assets Bill 2025
Pakistan has taken a major step toward regulating the digital economy as the Senate passed the Virtual Assets Bill, 2025, on 27 February 2026. paving the way for a formal crypto regulatory framework in the country.
The bill establishes the Pakistan Virtual Assets Regulatory Authority (PVARA) as an autonomous body to license, regulate, and supervise virtual asset activities nationwide.
This development signals a defining moment for Pakistan’s financial and digital future.
📜 From Ordinance to Law
Previously, PVARA was set up under the Virtual Assets Ordinance, 2025, approved by President of PAKISTAN Mr. Asif Ali Zardari in July last year. However, ordinances have limited validity. With the Senate’s approval, the bill now provides legal cover and long-term stability to the regulator’s existence.
The bill was presented by Finance Minister Muhammad Aurangzeb and passed after suspension of rules for immediate consideration.
It will now move to the National Assembly and, upon presidential assent, become an Act of Parliament.
💻 What Are Virtual Assets?
Virtual assets are digital representations of value traded or transferred through blockchain or distributed ledger technology (DLT). These include:
-
Bitcoin
-
Ethereum
-
Stablecoins
-
Digital tokens
-
Blockchain-based investment assets
Unlike traditional currencies issued by central banks, virtual assets operate on decentralized systems and derive value from market demand, underlying assets, or programmed mechanisms.
🏛 What Will PVARA Do?
The newly formalized authority will:
✅ License & Regulate
-
Virtual asset service providers (VASPs)
-
Digital asset issuers
-
Crypto exchanges and platforms
🔒 Ensure Investor Protection
-
Enforce transparency
-
Maintain market integrity
-
Set prudential and operational standards
🛡 Combat Financial Crimes
-
Prevent money laundering
-
Counter terrorist financing
-
Align with international AML standards
-
Coordinate with national regulatory and law enforcement bodies
🚀 Promote Innovation
-
Encourage responsible blockchain adoption
-
Promote digital financial inclusion
-
Attract foreign and local investment
-
Support compliant digital asset markets
🧑💼 Structure of the Authority
PVARA will function as an autonomous corporate body comprising:
-
A Chairperson (appointed by the federal government)
-
Secretaries from Law and Finance Ministries
-
Governor of State Bank of Pakistan
-
Chairperson of SECP
-
Chairman of National Anti-Money Laundering Authority
-
Chairperson of Pakistan Digital Authority
-
Two independent experts in digital finance & virtual assets
Members (except ex-officio) will serve three-year terms, renewable once.
⚖️ Strict Penalties Introduced
The bill introduces strong enforcement mechanisms:
-
❌ Unlicensed virtual asset services:
Up to 5 years imprisonment or Rs50 million fine, or both -
❌ Illegal token offerings:
Up to 3 years imprisonment or Rs25 million fine -
❌ Market manipulation & insider trading:
Punishable under law
A Virtual Assets Appellate Tribunal will also be established to hear appeals against PVARA decisions.
📈 What This Means for Pakistan’s Economy
According to PVARA Chairman Bilal bin Saqib, the bill transforms years of unregulated activity into a secure and investor-friendly ecosystem.
This legislation:
-
Enhances Pakistan’s global credibility in digital finance
-
Attracts blockchain startups and crypto businesses
-
Creates jobs in fintech and tech sectors
-
Strengthens anti-money laundering compliance
-
Encourages innovation under regulatory supervision
Pakistan is positioning itself as a serious and credible jurisdiction for digital assets and blockchain technology.
🌍 A Defining Moment for the Digital Economy
The Senate’s passage of the Virtual Assets Bill 2025 marks a historic transition from uncertainty to clarity in Pakistan’s crypto landscape.
With regulation, transparency, and investor safeguards in place, Pakistan is moving toward a structured and compliant digital asset market — balancing innovation with financial stability.
