By Qudsia Bano
Industry experts have praised Pakistan’s new Virtual Assets Bill 2025, saying it’s a major step toward regulating digital currencies and promoting innovation.
However, they also warned that the bill doesn’t do enough to protect consumers or clearly define how different government institutions will work together.
Creation of Pakistan Virtual Asset Regulatory Authority (PVARA)
The proposed law aims to create the Pakistan Virtual Asset Regulatory Authority (PVARA) to oversee the country’s digital asset industry.
Experts agree this is a positive move but say some sections of the bill need more clarity to ensure transparency and build trust among investors.
Farhan Qureshi, a Financial Advisor at the Fintech Association of Pakistan, said the new system should focus on protecting consumers before encouraging widespread use of digital assets.
“Without strong safeguards for small investors, digital assets could become another risky area open to scams and manipulation,” Qureshi said.
He added that there should be a clear system to resolve disputes and strict penalties for companies that break the rules.
Regulatory Overlaps Between SBP, SECP, and PVARA
Samina Kamran, a Senior Research Associate at the Pakistan Institute of Development Economics (PIDE), said the bill doesn’t clearly explain how responsibilities will be shared among the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan (SECP), and the proposed PVARA.
“Overlapping powers can create confusion and slow down important decisions, which might discourage honest businesses from entering the market,” Kamran explained.
She recommended that the government publish detailed guidelines before the law takes effect to avoid misunderstandings later.
Licensing, Blockchain Innovation, and Compliance Concerns
The Virtual Assets Bill 2025 would set up a licensing system for digital asset service providers and bring Pakistan’s financial rules in line with global anti–money laundering standards.
It also seeks to encourage innovation in blockchain and digital payments, particularly for young entrepreneurs.
However, experts worry that high compliance costs or unclear rules could hurt smaller companies and reduce competition.
Growing Digital Asset Activity and Cybersecurity Challenges
Qureshi noted that Pakistan’s interest in digital assets has grown quickly in recent years, even without clear regulations.
Millions of Pakistanis are already involved in crypto trading and blockchain projects through informal channels, he said.
Bringing these activities under a legal system could help collect taxes, improve transparency, and protect users from scams.
Experts also urged lawmakers to include stronger cybersecurity and data privacy measures in the bill.
As online scams and hacking incidents increase, they said the law must clearly define who is responsible when digital exchanges fail to protect users’ money.
Balancing Innovation and Consumer Safety in Digital Finance
The government sees the Virtual Assets Bill 2025 as a way to attract foreign investment and connect Pakistan with the global digital finance system.
But experts say innovation must go hand in hand with public safety.
They believe that consulting fintech professionals, legal experts, and consumer rights groups will help create a law that supports digital growth while protecting ordinary citizens from its potential risks.
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