Moaaz Manzoor

The Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, on Wednesday reviewed the Virtual Assets Bill 2025, a landmark legislation aimed at bringing Pakistan’s booming but largely unregulated cryptocurrency sector under formal oversight.

Senator Mandviwalla underscored the urgency of regulation, warning that most crypto transactions in Pakistan still pass through hawala and hundi channels, fueling illegal financial flows. He reminded the committee that Pakistan ranks eighth globally in crypto investment — a position that carries both promise and peril. “Without oversight, the risks outweigh the opportunities,” he cautioned, while also calling for a streamlined process to register companies to attract investors and ensure a level playing field.

Senator Mohsin Aziz highlighted the darker side of digital currencies, citing cases where kidnappers have demanded ransom in crypto instead of cash. “It shows how quickly crime adapts to new technology,” he remarked. Meanwhile, Executive Director of the State Bank of Pakistan (SBP), Dr. Inayat Hussain, confirmed that crypto remains in a legal “grey area” but acknowledged the growing expertise of Pakistani youth in trading.

Documents exclusively available to Wealth Pakistan show that the bill empowers a new authority to license, regulate, and supervise virtual asset service providers. To prevent misuse, the authority will work closely with the SBP, the Securities and Exchange Commission of Pakistan (SECP), the Federal Investigation Agency (FIA), the Financial Monitoring Unit, and other enforcement agencies. A regulatory coordination committee, comprising representatives from SBP, SECP, the Federal Board of Revenue, the Pakistan Digital Authority, and the Ministry of IT and Telecom, will ensure harmonised oversight.

Finance Secretary Imdadullah Bosal told the committee that the framework is designed to ensure transparency, protect investors, and curb money laundering. Under the bill, any person intending to set up a company for virtual asset services must first obtain preliminary approval from the authority. Applications must be acknowledged within seven days, with clear written reasons provided if rejected. Licensed operators will also be required to maintain a physical office in Pakistan, with at least one key manager residing locally.

Credit: INP-WealthPk