ISLAMABAD: The Senate Standing Committee on Finance and Revenue on Wednesday recommended that members and staff of the Pakistan Virtual Asset Regulatory Authority (PVARA) be barred from trading in virtual assets.

The committee also suggested placing the authority under the Finance Division rather than the Cabinet Division.

During discussions on the government’s Virtual Assets Bill 2025, PMLN Senator Afnanullah Khan accused the Secretary of Law of plagiarism. He claimed that he had originally tabled the bill, which was later “copy-pasted” by the Ministry of Law and introduced as the government’s version.

“This is shameful,” he said, adding that the government’s draft was identical to the one he had proposed, which had been opposed by the government earlier.

Senator Saleem Mandviwalla, who chaired the meeting, criticised the practice of the government claiming credit for draft laws initially proposed by members. He pointed out that such instances had occurred multiple times in the past, with the government only acting when parliamentarians introduced new bills. Senator Dilawar Khan likened the situation to someone claiming ownership of Mirza Ghalib’s poetry.

Secretary of Law Raja Naeem Akbar denied having seen Mr Khan’s private member bill until the Senate panel provided it. However, Senator Afnanullah maintained that the law minister had seen and opposed his bill when it was first introduced. He proposed a privilege motion in the Senate, accusing the Law Secretary of misleading Parliament by claiming the bill was never presented.

Recommends barring PVARA members from trading; proposes placing authority under Finance Division

The committee also recommended setting eligibility criteria for members and the chairman of PVARA, including a minimum of five years of experience and an age limit of 55 years. Senator Afnanullah suggested stronger safeguards for data privacy, and proposed that service providers be held accountable for privacy violations.

Senators Mandviwalla and Mohsin Aziz raised concerns over the $10,000 limit on virtual asset transactions, suggesting that there should be no such cap if the government is determined to regulate virtual assets.

The government had issued a presidential ordinance on July 8 to establish an independent regulator for virtual assets and service providers. The regulator will have comprehensive powers to ensure transparency, compliance, and prevent illicit activities such as money laundering and terrorism financing, in line with international standards set by the Financial Action Task Force (FATF).

PVARA’s board will include key government figures such as the State Bank’s governor, and the secretaries of finance, law, and information technology, as well as the chairpersons of the Securities and Exchange Commission of Pakistan (SECP), Federal Board of Revenue (FBR), and Digital Pakistan Authority. Two independent directors with expertise in virtual assets, law, finance, or technology will also be appointed by the federal government.

Under the bill, any person or company wishing to offer virtual asset services in or from Pakistan must be licensed by PVARA. The bill outlines a structured licensing regime with specific requirements for operational capacity, compliance frameworks, and reporting obligations.

The bill aims to ensure investor protection, promote transparency, and foster innovation in the virtual asset market.

The government has also ensured that the regulatory framework will be compatible with Islamic finance principles by mandating the creation of a Sharia Advisory Committee to advise PVARA on Sharia compliance for virtual asset products and services.

Published in Dawn, September 4th, 2025