The State Bank of Pakistan (SBP) has agreed in principle to recognise digital currency once a comprehensive legal and regulatory framework is in place.
This was disclosed by SBP Deputy Acting Governor Dr Inayat Hussain, while briefing the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, at the Parliament House.
The Senate panel considered the Virtual Assets Bill 2025 and it would continue its review in the next meeting for granting its assent.
On the discussion of the Virtual Assets Bill 2025, the SBP informed that they would withdraw the notification for banning digital currency by declaring the digital currency as legal once the legal and regulatory framework are put in place. The committee deliberated on the Government Bill titled “The Virtual Assets Bill, 2025”.
The Bill aimed to regulate virtual assets following established International practices. It was also informed that the given Virtual Assets Authority will play a key role in combating money laundering, terror financing and other illicit activities.
The Senate panel was informed that virtual assets are an evolving component of the modern financial ecosystem, offering new opportunities for innovation, investment, and economic growth. However, they also present significant regulatory challenges, particularly in ensuring investor protection, market transparency and the integrity of financial systems.
To address these challenges, a dedicated regulatory arm for the licensing and supervision of Virtual Asset Service Providers (VASPs) is essential. Such an oversight mechanism not only safeguards investors but also fosters innovation, mitigates risks of misuse and promotes confidence in the virtual asset market.