Pakistan’s Ministry of Finance, in coordination with the Securities & Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP), has introduced a comprehensive regulatory framework for virtual assets under the Virtual Assets Ordinance (VAO) 2025. The ordinance proposes a balanced approach that protects investors, prevents illicit activities, while fostering growth of the digital economy.
Key Regulatory Features
- Licensing and supervision of virtual asset service providers (VASP) by SECP.
- Enhanced due‑diligence and Know‑Your‑Customer (KYC) procedures.
- A regulatory sandbox for fintech innovators and blockchain startups.
- Clear tax framework for virtual asset transactions.
- Penalties and enforcement mechanisms to curb fraud and money laundering.
Benefits for Pakistan’s Economic Growth
- Attracts foreign direct investment (FDI) into fintech and blockchain sectors.
- Encourages entrepreneurship, job creation, and development of a knowledge‑based economy.
- Improves the financial inclusion of the unbanked population through digital payment solutions.
- Creates a robust, multi‑currency ecosystem that supports cross‑border trade.
- Increases revenue through taxation on virtual asset trading and services.
By aligning domestic regulations with international best practices, Pakistan positions itself as a regional leader in digital finance, unlocking new avenues for innovation and economic diversification.
