Business Desk 
May 30, 2025
The State Bank of Pakistan (SBP) has clarified that virtual assets (VAs), commonly referred to as digital assets or cryptocurrencies, are not illegal in Pakistan.
However, because of the absence of legal rules and regulations, the SBP advised its regulated financial institutions not to engage in them back in 2018.
What are virtual assets?
Virtual assets are digital representations of value (e.g., cryptographic currencies like Bitcoin, Ethereum, etc.) that can be traded or used for payments.
Virtual assets operate independently of a central bank, and virtual assets (VAs) are becoming popular recently around the globe for both investment and trading purposes.
SBP's take on virtual assets
The note from SBP stated the advisory issued in 2018 was meant to protect banks, microfinance institutions, payment service providers, and other entities from risks in the absence of a regulatory framework.
It further stated, “This did not mean that virtual assets were made illegal in Pakistan,” in response to reports issued after the 14th meeting of the National Assembly’s Standing Committee on Finance and Revenue.
The SBP also mentioned that it is currently working in close coordination with the Finance Division and the Pakistan Crypto Council—a body formed by the government—to develop a legal and regulatory framework for dealing with virtual assets in Pakistan.
Earlier on Friday, it was announced that the Pakistan Crypto Council (PCC) will hold a high-level meeting on June 2 to discuss the regulatory and legal framework surrounding digital currency and the broader crypto landscape in the country.
According to a press release from the Finance Ministry, the meeting will be chaired by Minister for Finance and Revenue Senator Muhammad Aurangzeb. Special Assistant to the Prime Minister on Blockchain and Crypto Bilal Bin Saqib will also attend in his role as PCC's CEO.
“Key items on the agenda include the development of a robust regulatory framework to govern digital and virtual assets in Pakistan, in alignment with global standards and technological advancements,” the press release stated.
A major topic of the meeting will be the groundwork for forming the Pakistan Virtual Assets Regulatory Authority (PVARA), a proposed independent body aimed at overseeing the country’s digital finance and crypto ecosystem.
The ministry added that the PCC’s goal is to create a “secure, transparent, and innovation-friendly regulatory environment,” while also promoting “responsible adoption of blockchain technology, protecting investors, and enhancing financial inclusion.”
“The upcoming meeting underscores the government's commitment to shaping a future-ready financial infrastructure while ensuring stability and compliance in the emerging digital economy,” it concluded.
