Overview
The Virtual Assets Bill 2025, introduced as a private member’s bill by Senator Dr. Afnan Ullah Khan, is poised for deliberation in the Senate of Pakistan. This landmark legislation aims to:
- Regulate cryptocurrencies and blockchain-based technologies.
- Introduce a Digital Rupee backed by the Pakistani Rupee (PKR).
- Establish clear guidelines for virtual asset exchanges and service providers.
Key Objectives
1. Regulatory Framework
The bill seeks to:
- Standardize issuance, trading, and use of virtual assets.
- Create Virtual Asset Zones to ensure financial stability and investor protection.
- Recognize the Digital Rupee as legal tender.
2. Licensing & Compliance
- Mandatory licensing for exchanges and service providers.
- AML/CTF adherence: Strict compliance with anti-money laundering and counterterrorism financing laws.
- Cybersecurity measures: Robust protocols to safeguard user data.
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Institutional Oversight
National Virtual Assets Regulatory Commission
Proposed responsibilities include:
- Risk assessment of virtual assets.
- Regulatory development for licensing and operations.
- Audits to ensure transparency and accountability.
Virtual Asset Zones
- Renewable energy hubs: Prioritize zones with surplus renewable capacity.
- Public register: Track licenses, compliance statuses, and revoked permits.
Economic Incentives
Tax Benefits
- Corporate tax reductions for Virtual Asset Zones (first 5 years).
- 3-year exemptions for foreign investors in blockchain/power projects.
- Revenue allocation: 33% to local infrastructure and blockchain education.
Transparency Measures
- Regular audits for exchanges and asset managers.
- Public reporting to build market trust.
FAQs
1. What is the Digital Rupee?
A central bank digital currency (CBDC) backed by PKR, enabling secure, government-regulated transactions.
2. How will the bill impact crypto investors?
Investors gain legal clarity and AML-protected platforms, reducing fraud risks.
3. Are foreign investors eligible for incentives?
Yes, tax exemptions apply for qualifying blockchain/power projects.
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Next Steps
Senate approval of the bill will position Pakistan as a regulated hub for blockchain innovation, balancing growth with financial security.
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