Pakistan, Feb. 11 -- A major controversy has emerged in Pakistan's Senate cabinet committee as no government ministry has stepped forward to take ownership of the proposed Virtual Assets Ordinance, aimed at regulating cryptocurrency and digital assets. The bill seeks to address the sector's long-standing legal vacuum.

Under the draft ordinance, all cryptocurrency exchanges and virtual asset service providers in Pakistan would be required to obtain licenses. Entities operating without approval could face up to seven years' imprisonment and fines reaching Rs100 million, raising concerns over enforcement.

Senator Saleem Mandviwalla proposed removing punitive clauses, arguing that harsh penalties could create implementation challenges. Howe...