The State Bank of Pakistan (SBP) announced plans to launch a digital currency for trading digital assets. After the Pakistan Virtual Assets Regulatory Authority (PVARA) Bill is passed, the SBP law will be updated. The digital currency will be equal in value to the Pakistani rupee and will be available in their bank accounts.
SBP’s Acting Deputy Governor Dr. Inayat Hussain told the Senate Finance Committee that the Foreign Exchange Regulation Act (FERA) will apply to digital currency transfers. Individuals will be limited to transferring $100,000 per year.
The committee, led by Senator Saleem Mandviwalla, is reviewing the PVARA Bill. This bill will create rules for digital assets. Earlier, the government issued a PVARA Ordinance. Now it wants a permanent law. However, the Ministry of Law and Justice has warned that the current FERA law may not fully cover digital assets. It needs to be changed.
Legal expert Shehroz Bakhtiyar said that it will be hard to enforce the $100,000 limit because digital transactions are fast and spread out. Senator Afnanullah Khan said Pakistanis have invested more than $21 billion in digital assets. He urged faster laws to regulate trading.
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Law Secretary Raja Naeem Akbar said laws like FERA, the Anti-Money Laundering Act, and Financial Action Task Force (FATF) rules will keep a tight watch on digital assets. Foreign companies like Binance must open offices in Pakistan and follow FERA. SBP also blocked attempts to legalize digital money without clear rules, saying it is risky.
In 2018, SBP said cryptocurrencies like Bitcoin and Litecoin are illegal because they don’t have government backing. Banks must report these transactions to the Financial Monitoring Unit (FMU).
PVARA will oversee nine digital services, including exchanges, lending, and asset management. The committee set the chairperson’s age limit at 55 years and requires five years of digital finance experience. It also added one National Assembly member and one senator to the authority. PVARA will work under the finance ministry for better results.
Pakistan’s digital currency plan could help its economy grow. But regulating and enforcing the rules will be challenging. The PVARA Bill is a step to make digital asset trading safer.
