The Senate of Pakistan is preparing to review the Virtual Assets Bill 2025, a private member’s proposal introduced by Senator Dr. Afnan Ullah Khan. The bill aims to regulate the growing sector of virtual assets, including cryptocurrencies and blockchain technologies.
Key Provisions of the Virtual Assets Bill 2025
Digital Rupee Introduction
The bill proposes the launch of a Digital Rupee, backed by the Pakistani Rupee (PKR) and regulated by the central bank. This initiative seeks to establish the Digital Rupee as an authorized legal tender.
Regulation of Virtual Assets
The bill outlines a framework for issuing, trading, and utilizing virtual assets in Pakistan. It proposes the creation of virtual asset zones to ensure financial stability, protect investors, and prevent illegal activities.
Licensing and Compliance
The bill mandates the registration and licensing of virtual currency zones, exchanges, and service providers. Entities must adhere to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. Regular audits and reporting requirements are included to promote transparency and accountability in the virtual currency market.
National Virtual Assets Regulatory Commission
If enacted, the bill will establish a National Virtual Assets Regulatory Commission tasked with:
- Analyzing the risks and benefits of virtual assets.
- Developing legal and regulatory frameworks.
- Overseeing licensing and operations of virtual assets zones and exchanges.
- Monitoring PKR-backed virtual assets and ensuring compliance with AML/CTF standards.
- Auditing virtual asset transactions and enforcing penalties for non-compliance.
Virtual Asset Zones
Specific regions with idle or underutilized power plants capable of generating surplus renewable energy will be designated as virtual asset zones. These zones will receive priority for development and tax incentives.
Licensing Requirements
Virtual currency exchanges and service providers must demonstrate business registration, financial stability, AML/CTF compliance, and cybersecurity measures to obtain licenses.
Tax Incentives
- Reduced corporate taxes for virtual asset zones during the first five years of operation.
- Tax exemptions for foreign investors contributing to blockchain projects or power plants for three years.
Investment in Local Development
One-third of revenue from virtual asset operations will be allocated to infrastructure development and blockchain education programs in Pakistan.
The Virtual Assets Bill 2025 promises to position Pakistan as a competitive player in the global digital economy while promoting transparency, investor protection, and economic growth.
