As the world embraces digital currencies and blockchain technologies, Pakistan is taking a significant step forward with the introduction of the Virtual Assets Bill 2025. Proposed by Senator Dr. Afnan Ullah Khan, this private member’s bill aims to establish a comprehensive legal framework for virtual assets, including cryptocurrencies and blockchain-driven solutions.
What is the Virtual Assets Bill 2025?
The Virtual Assets Bill 2025 seeks to regulate the issuance, use, trading, and management of virtual assets in Pakistan. By aligning with international standards and practices, this bill addresses critical issues such as investor protection, financial stability, and the prevention of illegal activities.
Key Features of the Virtual Assets Bill 2025
- Digital Rupee Launch The bill outlines the introduction of a Digital Rupee backed by the Pakistani Rupee (PKR). This central bank digital currency (CBDC) aims to modernize the country’s payment systems and enhance financial inclusion.
- Virtual Assets Zones To foster innovation, the bill proposes the creation of designated Virtual Assets Zones. These zones will be established in areas with surplus electricity capacity, particularly those with renewable energy sources. Businesses operating in these zones will benefit from tax incentives and reduced operational costs.
- National Virtual Assets Regulatory Commission A National Virtual Assets Regulatory Commission will be established to oversee the implementation of the bill. This commission will:
- Develop regulatory frameworks for virtual assets.
- Manage the registration and licensing of virtual currency exchanges and service providers.
- Conduct audits and ensure compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
- Licensing Requirements for Exchanges and Service Providers All virtual currency exchanges and service providers operating in Pakistan will need to obtain licenses. Applicants must:
- Provide evidence of business registration and financial stability.
- Outline AML/CTF compliance measures.
- Present robust cybersecurity protocols.
Transparency and Compliance Measures
The bill emphasizes transparency through regular audits and public inspection of registered licenses. Virtual assets entities must adhere to strict AML/CTF obligations, including customer due diligence (CDD) and reporting of suspicious activities.
Tax Incentives and Foreign Investment Opportunities
To attract investment and foster economic growth, the government will:
- Offer reduced corporate taxes for businesses in virtual assets zones during the first five years of operation.
- Provide tax exemptions for foreign investors contributing to local blockchain projects.
- Allocate a portion of the revenue from virtual assets operations to infrastructure development and blockchain education programs.
