Cryptocurrency Now Allowed in Pakistan

The State Bank of Pakistan (SBP) has announced a landmark decision to legalize virtual assets, allowing cryptocurrencies with certain restrictions. Here's what's allowed and what's not :

• Digital Rupee: SBP will introduce its own central bank digital currency (CBDC), a digital rupee, for purchasing virtual assets.

• Regulated Framework: A new Virtual Asset Regulatory Authority will oversee licensing, regulation, and monitoring of virtual asset activities.

• Nationwide Application: The proposed Virtual Asset Bill 2025 will apply across Pakistan.

• Restrictions:

• Limited Use: Virtual assets can only be transferred within the country and used within their specific regulated ecosystem.

• No Everyday Purchases: They cannot be used for buying everyday goods, services, or investments outside their ecosystem.

• Rationale:

• Existing Investments: Pakistanis have already invested an estimated $20 billion in cryptocurrencies, prompting the need for regulation.

• Investor Protection: The new framework aims to provide clarity, security, and safeguards for investors.

• Next Steps:

• Finalizing the Bill: The Senate Finance Committee will finalize the Virtual Asset Bill 2025 after addressing concerns and incorporating recommendations.

This move marks a significant shift in Pakistan's financial policy, potentially paving the way for economic growth, financial inclusiveness, and efficiency .