SBP to lift ban on digital currencies after regulatory framework

The State Bank of Pakistan (SBP) has indicated that the ban on digital currencies will be lifted once a comprehensive legal and regulatory framework is in place.

The development came during a briefing by SBP Deputy Acting Governor Dr Inayat Hussain to the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, at Parliament House on Wednesday.

The committee reviewed the government’s “Virtual Assets Bill, 2025,” which aims to regulate cryptocurrencies and related services in line with international practices. The bill, introduced in July under the Virtual Assets Ordinance, 2025, also led to the establishment of the Pakistan Virtual Asset Regulatory Authority (PVARA) to oversee the sector.

According to the SBP, once the framework is finalised, the bank will withdraw its earlier notification banning digital currencies. The proposed authority will license and supervise Virtual Asset Service Providers (VASPs), combat money laundering and terror financing, ensure investor protection, and promote financial inclusion, including Shariah-compliant services.

During the session, members discussed placing the authority under the Finance Division instead of the Cabinet Division. They also recommended setting the chairperson’s maximum age at 55 years, with at least five years of experience in digital finance and technology. Senator Anusha Rehman stressed the need to accommodate young professionals in the authority’s leadership.