Pakistan to launch digital currency, legalize crypto transactions

Pakistan is set to legalize crypto transactions as the central bank prepares to issue a digital currency, following the passage of the Virtual Assets Bill 2025.

The deputy governor of the State Bank of Pakistan (SBP) briefed the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, noting that the Virtual Assets Bill 2025 also paves the way for the legalization of crypto transactions in the country.

Under the bill, digital currency accounts will be created, enabling the conversion of conventional currency into digital currency through a designated exchange. Licensed service providers will be authorized to operate in the virtual assets space, and a virtual currency exchange will be established to facilitate buying and selling of digital currencies.

Once enacted, the SBP will develop a comprehensive regulatory framework to govern digital assets.

Some committee members raised concerns that the introduction of digital currency could potentially lead to the closure of commercial banks. It was clarified during the session that the existing Crypto Council currently functions only in an advisory capacity.

The committee also recommended placing the proposed Virtual Assets Authority under the Finance Division instead of the Cabinet Division. Additionally, it proposed that the head of the Digital Finance and Technology Authority should have a minimum age of 55 years and at least five years of relevant experience.

Further deliberations on the bill have been postponed to the next meeting.

During the session, the committee also addressed unauthorized salary and benefit increases within the Securities and Exchange Commission of Pakistan (SECP).

Senator Anusha Rehman criticized the SECP for approving salary hikes without Finance Division approval, calling it a violation of rules. In response, the Secretary of Law noted that the SECP board had discussed the matter in detail during its meeting. Senator Mohsin Aziz questioned whether any board member had recorded a dissenting note on the decision.

SECP Chairman Akif Saeed clarified that the salary increases were the first since 2019 and that the cumulative nature of the adjustments made the hikes appear larger. Senator Saleem Mandviwalla concluded that, under the law, the SECP policy board has full authority to approve such salary increases.