Pakistan Virtual Assets Bill 2025 Raises Senate Concerns

Senate Discusses Regulation of Virtual Assets

The Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, reviewed the Pakistan Virtual Assets Bill 2025. Lawmakers focused on regulation, taxation, and the potential misuse of cryptocurrencies in the country.

Illegal Channels and Rising Risks

Senator Mandviwalla highlighted that most crypto transactions in Pakistan are conducted through hawala and hundi channels, which are illegal. He stressed the urgency of regulation, noting that Pakistan ranks 8th globally in crypto investment. Without proper oversight, misuse could grow.

Senator Mohsin Aziz raised further alarm. He revealed that kidnappers are now demanding ransom in cryptocurrency instead of cash. He called this a dangerous trend linked to unregulated digital assets.

Central Bank and Legal Perspective

The State Bank of Pakistan (SBP) confirmed that crypto remains in a legal “grey area.” Advisories have already been issued, but risks remain. SBP Deputy Governor added that Pakistani youth show strong skills in crypto trading but warned against unregulated practices.

The Ministry of Law explained that the bill proposes an independent board to oversee virtual assets. This board would include experts in finance, technology, and regulatory affairs. Senator Mandviwalla insisted that eligibility rules for board members must be part of the law itself, not left for later rules.

Taxation and Economic Impact

Finance Secretary Imdadullah Bosal stated that Pakistan had no formal regulations for virtual assets before. The bill aims to bring transparency and prevent money laundering. Senator Dilawar Khan suggested a uniform 5% tax rate to boost compliance. He argued that lowering current tax rates could raise overall revenue by 40%.

Concerns on Enforcement and Customs

Senator Anusha Rahman criticized customs operations. She reported that traders face bribes at multiple checkpoints between Quetta and Taftan. She questioned whether the new law would reduce or worsen money laundering.

Balanced Regulation Needed

The committee concluded that while virtual assets provide economic opportunities, they also create serious risks. Money laundering, illegal transfers, and criminal misuse remain key threats. Lawmakers agreed that the Pakistan Virtual Assets Bill must balance innovation with strict regulation to protect the economy.

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