#DigitalAssetBill

The "Virtual Assets Bill 2025" in Pakistan, introduced by Senator Afnan Ullah Khan, represents a significant step towards regulating the burgeoning digital asset market, encompassing cryptocurrencies and blockchain technologies.

This proposed legislation aims to establish a comprehensive framework governing the issuance, trading, and management of virtual assets within the country.

A key highlight of the bill is the envisioned creation of a "Digital Rupee," a central bank digital currency (CBDC) pegged to the Pakistani Rupee, operating under the oversight of the central bank.

Additionally, the bill proposes the establishment of "Virtual Asset Zones," designated areas intended to foster cryptocurrency trading and management while ensuring financial stability and investor protection.

To enhance transparency and accountability, the bill mandates strict compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations for all entities involved in the virtual asset market.

Regular audits and reporting requirements will also be enforced.

A crucial component of the proposed framework is the establishment of a National Virtual Assets Regulatory Commission, tasked with licensing and overseeing Virtual Asset Zones, exchanges, and service providers.

This commission will also be responsible for the issuance of Pakistan Rupee-backed virtual assets and the enforcement of AML/CTF compliance.

While Pakistan has historically held an anti-cryptocurrency stance, this bill signals a potential shift in policy, recognizing the growing importance of digital assets in the global financial landscape.

The bill is currently under review by the federal cabinet before it is presented to the parliament for final approval.