Crypto Not Illegal but in ‘Grey Area’, Says SBP Deputy Governor

ISLAMABAD:The **Deputy Governor of the State Bank of Pakistan (SBP)** stated on Wednesday that **cryptocurrency is not illegal** in Pakistan but exists in a **”grey area”**, as discussions continued in the **Senate Standing Committee on Finance** on the proposed **Virtual Asset Bill 2025**.

During the session, the SBP official acknowledged that **Pakistani youth possess considerable expertise in cryptocurrency**, but clarified that there is currently **no legal framework** officially regulating or banning crypto.

> “Cryptocurrency is not illegal, but it falls in the grey area,” the Deputy Governor told the committee.

Committee Chairman **Senator Saleem Mandviwalla** raised concerns over the **use of crypto in illegal transactions**, pointing out that many crypto dealings are being carried out through **”Hundi” and “Hawala” systems**, which are **explicitly illegal** under Pakistani law.

> “If Hundi and Hawala are illegal, how can crypto dealings be in a grey area?” Mandviwalla questioned.

**Senator Mohsin Aziz** expressed security concerns, stating that he had learned from reliable sources that **cryptocurrencies are increasingly being used in ransom payments**.

> “No one demands cash anymore. It’s all crypto,” he said.

Meanwhile, during discussions on the **taxation system**, **Senator Dilawar Khan** criticized the **complex tax structure**, pointing to multiple layers like **super tax** and **sales tax**.

> “We don’t even know how many different taxes are being imposed. If a uniform 5% tax was applied across the board, tax revenue could increase by 40%,” he suggested.

The committee continues to deliberate on the **Virtual Asset Bill 2025**, which aims to bring clarity and regulation to the rapidly evolving crypto space in Pakistan.