The “Virtual Assets Bill 2025” aims to establish the framework for the development of the Digital Rupee, which will be regulated by the central bank and pegged to local currency.
ISLAMABAD: The “Virtual Assets Bill 2025,” a ground-breaking piece of legislation introduced by Senator Dr. Afnan Ullah Khan of Pakistan’s ruling party, is a private member’s bill that aims to create a regulatory framework for the nation’s rapidly expanding digital asset market, which includes cryptocurrencies and blockchain-based technologies.
According to “The News,” a copy of the law aims to establish the framework for the establishment of a digital rupee that is based on the Pakistani rupee (PKR) and subject to central bank regulations.
To guarantee that virtual assets are supported by the Pakistani Rupee, it seeks to provide a legal and regulatory framework for their issuance, use, trade, and administration within Pakistan. The creation of Virtual Asset Zones—areas set apart for cryptocurrency trading and management—is a crucial component of the measure. This would safeguard investors, promote financial stability, and stop illegal activities like money laundering and terrorism financing.
The bill introduces transparency requirements, such as frequent audits and reporting for organizations operating in the virtual assets market, and requires that these zones adhere to stringent anti-money laundering (AML) and terrorist financing (CTF) regulations. The purpose of these actions is to promote accountability and trust in Pakistan’s financial sector.
The establishment of a National Virtual Assets Regulatory Commission is a key component of the measure. The Commission will be in charge of virtual asset zones, exchanges, and service providers nationwide in terms of registration and licensing. It will also audit transactions, enforce AML and CTF compliance rules, and keep an eye on the issue and upkeep of virtual assets backed by the Pakistani Rupee. Noncompliance will result in penalties.
This bill’s main goal is to guarantee that virtual assets are handled, exchanged and used safely within Pakistan while offering users and investors a stable environment. The introduction of Pakistan’s digital currency will also be made possible by this, further solidifying our place in the world economy.
According to the bill, areas with excess renewable energy, particularly those with underutilized or idle power facilities, should be identified by the federal or provincial governments and designated as Virtual Asset Zones. As long as these zones adhere to AML/CTF regulations, they will receive tax breaks for the first five years of operation.
Additionally, the government would provide tax exemptions for up to three years to foreign corporations or investors funding local blockchain projects or power plants to attract foreign investment in the nation’s blockchain sector.
Additionally, a third of the money made from virtual asset activities will be used by the government to fund blockchain-focused education initiatives and local infrastructure development.
To operate in these zones, applicants must show proof of their financial stability, cybersecurity procedures, AML/CTF compliance, and business registration. Additionally, they have to keep track of consumer transactions and identifying information for at least five years.
Pakistan’s cryptocurrency scene is anticipated to be significantly impacted by the Virtual Assets Bill 2025, which would provide prospects for blockchain innovation-driven economic growth in addition to regulatory control.
