Key Points
- Virtual Assets Authority to combat money laundering and terror financing
- Chairperson capped at 55 years with digital finance experience
- Further deliberations on the bill deferred
- PVARA reviewing SBP’s 2018 crypto ban
ISLAMABAD: Pakistan’s Senate finance body on Wednesday recommended that the country’s proposed Virtual Assets Authority be placed under the Finance Division instead of the Cabinet Division, according to a statement issued by the Senate Standing Committee on Finance and Revenue.
The committee, chaired by Senator Saleem Mandviwalla, convened at Parliament House to deliberate on the Virtual Assets Bill, 2025, which aims to regulate virtual assets in line with international practices.
“While thoroughly examining the bill, the committee recommended that the Virtual Assets Authority should be placed under the Finance Division instead of the Cabinet Division, given the nature of the subject,” the official statement said.
The committee further noted that the authority will play a key role in combating money laundering, terror financing and other illicit activities.
During the session, the members also decided that the chairperson of the authority must not exceed the age of 55 years and must have at least five years of experience in digital finance and technology.
After detailed discussions, the finance body deferred further deliberations on the bill until its next meeting.
The proposal comes as Pakistan moves quickly to establish a comprehensive regulatory regime for digital assets.
The Pakistan Virtual Assets Regulatory Authority (PVARA), established through a presidential ordinance on July 8, 2025, has already held its first board meeting, where members discussed revoking the State Bank of Pakistan’s 2018 ban on virtual currencies.
That meeting also considered AI-driven risk management, licensing procedures and supervisory frameworks.
The SBP circular issued in April 2018 had barred financial institutions from dealing in cryptocurrencies such as Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin and Pay Diamond, declaring that they were neither legal tender nor guaranteed by the Government of Pakistan.
The new bill and the committee’s recommendations form part of broader financial reforms. In July, State Bank Governor Jameel Ahmad announced plans to launch a pilot program for a central bank digital currency, signalling Pakistan’s intention to modernise its payments infrastructure.
Earlier in March, the government established the Pakistan Crypto Council under Finance Minister Muhammad Aurangzeb, with Bilal Bin Saqib as Chief Executive.
The Council also has support from international experts, including Binance co-founder Changpeng Zhao, to promote blockchain innovation and ensure compliance with the Financial Action Task Force’s standards.
Analysts say placing the Virtual Assets Authority under the Finance Division would ensure centralised oversight of a technically complex sector and strengthen anti-money laundering safeguards.
The introduction of age and experience criteria for the chairperson reflects an emphasis on professional leadership capable of handling modern digital finance challenges.
At the same time, PVARA’s review of the State Bank’s ban suggests a gradual shift towards regulated adoption of virtual assets, balancing financial innovation with risk mitigation.
The push toward a digital currency pilot further highlights Pakistan’s efforts to enhance efficiency and inclusion in the financial system, while inter-agency coordination through the Pakistan Crypto Council provides a platform for policy alignment and international credibility.
