ISLAMABAD — The State Bank of Pakistan (SBP) is preparing to regulate cryptocurrencies and introduce a central bank digital rupee, Deputy Governor Dr. Inayat Hussain told the Senate Finance Committee. He confirmed the crypto ban will be lifted and a regulatory framework introduced in line with global standards.
Dr. Hussain said work on the digital rupee has already begun. He added that a framework would also govern the sale of virtual assets abroad, offering investors a legal and secure channel.
Senator Afnanullah Khan noted that Pakistanis have invested an estimated $21 billion in cryptocurrencies, stressing the urgency of regulation. The Ministry of Law and Justice confirmed that the Virtual Asset Bill 2025 will be enforced nationwide.
Barrister Syed Shehroze clarified that while virtual assets will be transferable within Pakistan, they cannot be used for goods, services, or foreign investments, and will remain limited to the regulated ecosystem.
The Senate Finance Committee recommended expanding representation in the new regulatory authority by including both a senator and an MNA. It also proposed that the chairman must have at least five years of experience and be under 55 years of age.
Some members opposed a proposed $10,000 transaction cap, with Senators Afnanullah and Mohsin Aziz calling for unrestricted limits. Afnanullah also warned of risks to data privacy, urging strict safeguards to prevent misuse.
The committee approved rules against insider trading, barring board members from sharing policy details or gaining indirect benefits through family members.
The new authority will initially operate on government funding but is expected to generate revenue later through licenses, penalties, and service charges. Officials emphasized it will function independently to protect investors.
Although the committee welcomed the move, it deferred approval of the Virtual Asset Bill 2025, saying more discussions were needed before its passage. A final decision will be taken in the next meeting.
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