ISLAMABAD: The National Assembly on Tuesday passed the “Virtual Assets Bill, 2026” to legalize digital currency by setting up an authority to protect investors, support innovation, and promote transparency in the virtual assets market. The government bill was passed after suspending the scheduled business for Private Members’ Day in the House. The Virtual Assets Bill, 2026, had already been approved by the Senate on February 27, 2026, and was subsequently referred to the National Assembly. It will now be sent to the President of Pakistan for assent. Once the President grants assent, the bill will become law. Federal Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhry presented the bill before the House for consideration and it was passed by a majority vote. Under this law, an authority would be established for the licensing, regulation, and supervision of virtual assets and virtual assets service providers. READ ALSO: Crypto: a challenge and an opportunity The bill states thatit is necessary to provide a comprehensive legal framework to empower the Authority to combat money laundering, terrorist financing, proliferation financing, and other illicit activities involving Virtual Assets, in accordance with international standards, and to provide for matters connected there with or ancillary thereto. According to clause 06 of the bill, “after the commencement of this Act, an authority shall be established to be known as the Pakistan Virtual Assets Regulatory Authority, which shall carry out the purposes of this Act. The clause 07 of the bill states that “the Authority shall consist of the following, namely:-(a) Chairperson - to be appointed by the Federal Government, (b) the Secretary, Ministry of Finance, (c) the Secretary, Ministry of Law and Justice, (d) the Governor, State Bank of Pakistan, (e) the Chairperson, Securities and Exchange Commission of Pakistan, (f) the Chairman, National AML-CFT Authority, (g) the Chairperson, Pakistan Digital Authority; and(h) two independent directors with proven expertise and a strong track record possessing expertise relevant to Virtual Asset markets, digital technology, digital finance, appointed by the Federal Government in the manner Prescribed. The Authority shall determine its own policy and strategic direction and approve its budget and regulations. According to the statement of objects and reasons of the bill, “this authority will create an enabling environment for safe trading, prevent illegal activities like money laundering and fraud, and enhance global competitiveness. Therefore, a corresponding legal framework, empowering the Authority, is also required to combat money laundering, terrorist financing, and other illicit activities while promoting innovation, financial inclusion, economic growth, and development of Shariah-compliant virtual asset services aligned with international standards.” Copyright Business Recorder, 2026