State Bank of Pakistan to Legalize Cryptocurrencies With Limited Purchase Option
The State Bank of Pakistan (SBP) has officially announced its decision to legalize cryptocurrencies through a regulated framework, introducing a central bank–backed digital rupee to control transactions.
During a briefing to the Senate Finance Committee, chaired by Senator Saleem Mandviwalla, Deputy Governor Dr. Inayat Hussain revealed that the advisory declaring cryptocurrency illegal will soon be withdrawn. This marks a significant shift in Pakistan’s financial policy, opening doors to regulated virtual asset trading.
💰 Pakistan’s Investment in Cryptocurrencies
Senator Afnanullah Khan highlighted that Pakistanis have already invested nearly $21 billion in cryptocurrencies, reinforcing the need for regulation and investor protection.
📜 Virtual Asset Bill 2025
The upcoming Virtual Asset Bill 2025 will:
Establish a Virtual Asset Regulatory Authority (VARA) to oversee licensing, regulation, and monitoring.
Ensure compliance with FATF, Anti-Money Laundering (AML), and Counter-Terror Financing (CTF) standards.
Introduce safeguards for customer protection and secure investments.
Allow the digital rupee, issued by SBP, to facilitate regulated crypto purchases.
Barrister Syed Shehroze explained that virtual assets will be transferable and usable nationwide but cannot be used for purchasing goods, services, or investments outside the regulated ecosystem.
🏦 Governance of the Regulatory Authority
The board of VARA will include:
Governor of the State Bank
Secretaries of Finance, Law, and IT
Chairpersons of FBR, SECP, and Digital Pakistan
Director General of FIA
The Senate Finance Committee also proposed adding one Member of the National Assembly and one Senator to the board.
🔒 Investor Protection & Data Privacy
Key safeguards in the bill include:
Protection of user data privacy
Restrictions on insider trading
Independent operation of the authority funded through licensing fees, penalties, and government support
Senator Afnan Ullah emphasized that service providers must ensure data security, while Senator Mohsin Aziz raised objections to the $10,000 transaction limit, calling for more flexibility.
🌍 Pakistan’s Digital Future
The digital rupee will create a secure avenue for investing in virtual assets, while ensuring transparency and compliance with international standards. The Senate Finance Committee welcomed this initiative but deferred further discussions until the next meeting to finalize the Virtual Asset Bill 2025.
✅ With this move, Pakistan joins global economies in shaping a regulated digital finance ecosystem—a step that could redefine the country’s financial future.