Digital Currencies Trading: Ordinance Issued to Provide Legal Cover

Staff Report

Islamabad: The President of Pakistan has issued the Virtual Assets Regulatory Authority Ordinance 2025 to provide legal cover to trading of digital assets in Pakistan.

At present, there has been a trading of digital currencies without any legal cover in the country.

The ordinance is aimed at introducing a comprehensive legal framework to oversee virtual assets and their service providers in Pakistan.

The Authority will function as a corporate body with the power to file legal cases, own property, and engage in buying, selling, and signing contracts.Pakistan Stepping Into Crypto Future

The Authority’s head office will be located in Islamabad and will set up regional offices anywhere in the country.

It will also have powers to issue, suspend, or cancel licenses of virtual asset service providers.

It will also create regulations to monitor and control virtual assets to ensure responsibly and transparently. Furthermore, the Authority will also take measures to prevent money laundering and the financing of terrorism through the use of virtual assets.

The ordinance gives the Authority the right to conduct investigations and take regulatory actions, and impose fines.

To manage its operations, the Authority will have a governing board to work as the highest policy-making body.

The board will consist of a Chairman and two members—one from the Ministry of Finance and one from the Ministry of Law. With its approval, the board will also be empowered to include more members as advisors. The Chairman and non-government board members will serve a term of three years.

It will ensure the entities to work with a proper license. Any individual or company found operating without a license will face face penalties.

If any service provider violates the regulations or fails to maintain financial stability, the Authority has the power to cancel their license.

Additionally, it can inspect operations, request relevant records, and summon involved parties as part of its enforcement process.

In case of violations, it can also order the suspension of services or revoke licenses.

By creating a structured and enforceable framework, the ordinance is aimed at providing legal clarity and strengthen oversight in the digital financial landscape.

It also ensures to regulate virtual assets to promote financial integrity and public trust.