The Government of Pakistan is aiming to establish a National Virtual Assets Regulatory Commission to examine efficacy, risks and vulnerabilities regarding virtual assets and develop a legal and regulatory framework to manage and oversee the country’s virtual assets.
PMLN Senator Afnanullah Khan has introduced The Regulation of Virtual Assets Bill, 2025 as a private member’s bill. In its statement of objects and reasons, the legislation aims to regulate the issuance, use, trading, and utilization of virtual assets within Pakistan, backed by the Pakistani rupee. It would also set up virtual asset zones to ensure financial stability, protect investors, and prevent illegal activities.
To achieve this, the bill calls for the establishment of an independent National Virtual Assets Regulatory Commission comprised of four full-time members and a chairman. The term in office for all members will span 4 years, with a possibility of another 4-year extension at the expiry of their tenure.
Under the bill, the federal government, in consultation with the board of directors of the State Bank of Pakistan, would declare the digital rupee, backed by the Pakistani rupee, as legal tender. The central bank, it states, shall be responsible for the issuance and regulation of the digital rupee. It would also develop the technical and operational mechanism and standards for the digital rupee to ensure its Integration into the national payment system.
Virtual Asset Zones
The government would identify and designate specific regions for the establishment of virtual asset zones. Preference would be accorded to regions with abandoned, idle, or underutilized power plants that can still generate surplus electricity via renewable energy. Such zones, states the bill, would ensure financial stability, protect investors, prevent illegal activities, and establish the legal framework for the digital rupee to be recognized as authorized legal tender.
For the registration of Virtual Assets Zones, the Commission shall maintain a register of licenses for all virtual currency exchanges and virtual asset service providers operating in the country. It would similarly compile records of applications for licenses issued, enforcement orders associated with issued licenses, and information regarding the revocation of any license. Applicants would be required to submit evidence of business registration, prove financial stability, outline measures depicting AML/CTF compliance, and present cybersecurity protocols to the commission.
Furthermore, the bill helps enable transparency in the virtual currency market by organizing regular audits and reporting from entities involved in managing and trading virtual assets. This, states the bill, would subsequently foster and maintain trust and accountability in the financial system of Pakistan.
Tax Incentives
The proposed bill calls for the government charging lower rates of corporate tax on designated virtual assets zones for the first five years of their operation, subject to fulfillment of anti-money laundering requirements. It stressed that all virtual currency exchanges and virtual assets service providers must adhere to AML/CTF obligations, including but not limited to customer due diligence and reporting suspicious activities; ensuring entities maintain transaction records and customer identification data for a minimum of five years.