Pakistan to Legalize Digital Currency with Islamic Framework by 2025
Pakistan prepares to legalize digital currencies under a new Islamic-compliant framework, with the State Bank of Pakistan confirming plans to regulate virtual assets through the Virtual Assets Bill 2025.
Pakistani officials discuss the new Virtual Assets Bill 2025 at Parliament House, emphasizing Islamic compliance in digital finance
In a landmark move towards digital financial innovation while maintaining Islamic principles, Pakistan is set to recognize and regulate digital currencies under the new Virtual Assets Bill 2025. The State Bank of Pakistan (SBP) has confirmed its intention to lift the existing cryptocurrency ban once a robust regulatory framework ensuring national security is established.
Islamic Compliance and National Security at Forefront
During a crucial briefing to the Senate Standing Committee on Finance, SBP Deputy Acting Governor Dr. Inayat Hussain emphasized the importance of aligning digital currency regulations with Islamic banking principles. The proposed framework aims to promote Shariah-compliant digital products while safeguarding Pakistan's financial sovereignty.
Pakistan Virtual Asset Regulatory Authority (PVARA)
The government's initiative includes establishing PVARA as the central authority for overseeing digital currencies. This move demonstrates Pakistan's commitment to embracing technological advancement while maintaining Islamic values in the financial sector.
Key Features of the Virtual Assets Bill 2025:
- Establishment of Shariah-compliant digital asset framework
- Strict measures against money laundering and terror financing
- Licensing system for Virtual Asset Service Providers (VASPs)
- Protection of national financial interests
- Promotion of Islamic financial innovation
Youth Leadership in Digital Finance
Senator Anusha Rehman's recommendation to appoint young professionals with digital finance expertise marks a progressive approach to leadership in this sector. The proposal requires the PVARA chairperson to be under 55 years old with significant experience in digital finance and technology.
"We must ensure that our digital financial framework aligns with both Islamic principles and modern technological requirements," stated Dr. Inayat Hussain during the briefing.
The Senate panel will continue detailed discussions in upcoming sessions to finalize this groundbreaking legislation that positions Pakistan at the forefront of Islamic digital finance.
Hamza Qureshi
Hamza Qureshi is a journalist rooted in national identity, writing with a focus on Pakistan’s strategic interests and moral compass. His work highlights the nation’s Islamic heritage, supports the integrity of its institutions, and defends the Kashmiri cause with clarity and restraint. Without sensationalism, he navigates regional tensions with a firm yet composed voice.