The Virtual Assets Bill 2025 is a ground-breaking piece of legislation that Senator Dr. Afnan Ullah Khan introduced to the Pakistani Senate. To guarantee their responsible and safe integration into the nation’s financial and technical landscape, this private member’s bill aims to create a strong regulatory framework for virtual assets, including cryptocurrencies and blockchain technology.
One of the bill’s main features is the introduction of the Digital Rupee, a virtual currency that is backed by the Pakistani Rupee (PKR) and subject to central bank rules. In order to safeguard investors, prevent illegal behaviour, and preserve financial stability, the law aims to control the issuance, trading, and usage of virtual assets.
To encourage innovation and expansion in the sector, the law also proposes the creation of virtual asset zones. While safeguarding its legal and economic interests, Pakistan hopes to position itself as a forward-thinking country that is embracing digital finance with the passage of this legislation.
The law provides thorough rules and requirements for asset providers, exchanges, and digital currency zones to register and obtain licenses. Mandatory compliance with laws pertaining to the prevention of money laundering and the funding of terrorism has been created by this Act.
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Additionally, by enabling regular assessments and disclosures from entities involved in the administration and trading of virtual assets, it fosters transparency in the digital currency environment and upholds accountability and trust in Pakistan’s financial system.
- National Virtual Assets Regulatory Commission
In order to implement the goals of this Bill, the government will create a National Virtual Assets Regulatory Commission if it is approved. The commission will provide assistance in:
- Ensure that bitcoin exchanges, digital asset zones, and digital asset service providers around the country are registered and licensed.
- Provide a framework of laws and regulations for the country’s management and supervision of virtual assets.
- Recognise the advantages, disadvantages, and hazards of virtual assets.
- Oversee and plan the activities associated with the operation of the country’s digital asset zones.
- Observe how virtual assets backed by the Pakistani rupee are issued and maintained.
- Analyse and examine processes and transactions involving digital assets.
Establish, oversee, and uphold standards for preventing money laundering and terrorism financing in the context of virtual asset businesses; to understand the customers as participants or intermediaries in virtual asset trading through their actions and intentions; and to enforce rules and impose penalties for infractions.
Virtual Assets Zones
- Particular regions will be identified and designated by the federal government or the provincial government. Priority will be given to areas with underutilised, idle, or abandoned power facilities that could produce excess electricity using renewable energy.
- The commission is responsible for managing a virtual assets zone licence registry. This record will include filed license applications, enforcement orders related to licenses that have been issued, and information about any licenses that have been revoked. The public will be able to view the register and file complaints.
- The Commission will issue licenses to all virtual currency exchanges and Virtual Assets Service Providers that operate in the country following consultation with the pertinent Ministries and their related departments.
- The Commission must receive verification of business registration, financial soundness, AML/CTF compliance measures, and cybersecurity processes from applicants.
The following actions will be taken by the government:
- For a first five-year term, apply lower corporate tax rates to designated virtual asset zones, provided that AML/CTF compliance standards are met.
- Require virtual currency exchanges and service providers to adhere to AML/CTF requirements, which include reporting suspicious activity and doing customer due diligence (CDD).
- Ensure that businesses retain customer identification numbers and transaction logs for a minimum of five years.
- By providing a three-year tax exemption to those who contribute to regional blockchain development projects or power plants, the government hopes to attract overseas investment.
- The government intends to allocate a sizeable amount of the money made from the operations of virtual assets to improving regional infrastructure and furthering blockchain-related educational programs.
The approval of the Virtual Assets Bill 2025 could be a major step in Pakistan’s development of a safe, open, and creative digital economy. This action is a reflection of the nation’s attempts to handle the benefits and problems brought forth by new technologies.