Policy
Pakistan Launches Virtual Assets Act to Attract Crypto Businesses
Pakistan has announced a new regulatory framework for cryptocurrency, transitioning from a nearly decade-long ban to a structured legal environment for virtual assets. Bilal Bin Saqib, the special assistant to the prime minister on blockchain and cryptocurrency, made the announcement via an X post, inviting foreign businesses to invest and operate in the country.
The newly introduced Virtual Assets Act represents Pakistan's first comprehensive legal framework for overseeing virtual assets and the businesses involved in this sector. Bin Saqib emphasized that the era of prohibition has ended, stating, "For approximately a decade, Pakistan’s answer to virtual assets was complete permission and complete ban — but history tells us that technology never waits for permission." He encouraged companies to get licensed and compliant, highlighting the clarity and enforceability of the new rules.
The act was approved by the Senate earlier this year and signed into law by President Asif Ali Zardari. With the licensing regulations now in place, the government aims to integrate virtual assets into the formal economy, protect consumers, and lay the groundwork for a modern financial infrastructure.
Pakistan has been increasingly crypto-friendly, with initiatives including plans for a national Bitcoin reserve announced at Bitcoin 2025 and the allocation of surplus electricity for Bitcoin mining and AI data centers. The country has also positioned itself as a mediator between the U.S. and Iran, further enhancing its role in the global crypto landscape.
FAQ
What is the Virtual Assets Act introduced by Pakistan?
The Virtual Assets Act is a regulatory framework established by Pakistan to legally oversee cryptocurrency and virtual assets, transitioning from a ban to a structured environment for businesses in this sector.
Who announced the Virtual Assets Act?
Bilal Bin Saqib, the special assistant to the prime minister on blockchain and cryptocurrency, announced the Virtual Assets Act via a post on X.
What are the goals of the Virtual Assets Act?
The goals of the Virtual Assets Act include integrating virtual assets into the formal economy, protecting consumers, and establishing a modern financial infrastructure in Pakistan.
How long was cryptocurrency banned in Pakistan before the introduction of the Virtual Assets Act?
Cryptocurrency was banned in Pakistan for nearly a decade before the introduction of the Virtual Assets Act.
What initiatives has Pakistan taken to become more crypto-friendly?
Pakistan has announced plans for a national Bitcoin reserve, allocated surplus electricity for Bitcoin mining and AI data centers, and positioned itself as a mediator between the U.S. and Iran to enhance its role in the global crypto landscape.