Senate Committee Discusses Virtual Assets Bill 2025, Focuses on Crypto Regulation and Taxation
The Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, convened to review the Virtual Assets Bill 2025, with discussions centered on cryptocurrency regulation, taxation, and potential misuse in Pakistan.
Senator Mandviwalla highlighted concerns that many crypto transactions in Pakistan are conducted through hawala and hundi channels, which are illegal. “Pakistan ranks 8th globally in crypto investment, making regulation urgent to prevent misuse,” he said.
Senator Mohsin Aziz raised alarms over reports of cryptocurrencies being used in kidnapping-for-ransom cases, noting that criminals now demand payments in crypto instead of cash.
Representatives from the State Bank of Pakistan (SBP) explained that cryptocurrencies currently operate in a legal grey area, but advisories have already been issued. SBP’s Deputy Governor emphasized the youth’s expertise in crypto trading while warning of the risks associated with unregulated transactions.
The Ministry of Law stated that the bill proposes the creation of an independent board to oversee virtual assets, staffed with experts in technology, finance, and regulatory affairs. Chairman Mandviwalla stressed that the eligibility criteria for board members should be clearly defined within the legislation.
Finance Secretary Imdadullah Bosal noted that Pakistan previously had no formal regulations for virtual assets, but the new bill aims to introduce transparency and oversight, including measures to assess potential money laundering risks.
On taxation, Senator Dilawar Khan suggested a uniform 5% tax on virtual assets to boost compliance and revenue. “Reducing tax rates could increase overall collection by 40%,” he said, cautioning against experiments that might destabilize the economy.
Senator Anusha Rahman criticized customs authorities, pointing to 23 checkpoints between Quetta and Taftan where traders reportedly pay bribes. She questioned whether the proposed law would reduce or exacerbate money laundering.
The meeting concluded with agreement that virtual assets offer significant economic opportunities, but also present risks such as money laundering, illegal transfers, and criminal misuse. The committee emphasized the need for balanced and robust regulation to ensure safe growth of Pakistan’s cryptocurrency sector.
