Will crypto Be Legal In Pakistan?
Cryptocurrency is not yet legal in Pakistan, but the government has established a Crypto Council to bring cryptocurrency under the purview of the law, which is an important step for the development of this sector.
Despite the formation of the Crypto Council in recent months, progress in this regard has been slow, which is being attributed to various problems faced globally.
Nevertheless, the possibility of cryptocurrency becoming legally permissible still exists, but it will take more time.
According to Muhammad Zafar Paracha, General Secretary of the Exchange Companies Association, there is still a lot of work to be done to bring cryptocurrencies under the purview of the law.
He says that it may take about another year to legalize cryptocurrency in Pakistan.
He emphasizes that the rate of cryptocurrency changes rapidly, and it is not very safe to invest in it at present, so the government needs to make a careful decision.
Zafar Paracha added that there are also benefits to legally regulating crypto, especially as it can reduce illegal activities such as money laundering, arms procurement and human trafficking.
If cryptocurrency is legally approved, it will also be accompanied by a strong checks and balances system, which will make it possible to prevent these crimes.
He also pointed out that in a developing country like Pakistan, if cryptocurrency is not properly regulated, it could lead to a risk of foreign exchange withdrawal, as dollars are required to buy cryptocurrency, which could increase the financial crisis.
Nevertheless, legalizing cryptocurrency could be beneficial for Pakistan’s economy, especially if the government works on it with proper checks and balances.
This will not only increase domestic investment but also create new job opportunities for the youth.
Establishment of Pakistan Crypto Council: A step towards a revolution in the digital currency sector
The Pakistan Crypto Council (PCC) is a government-established body that aims to provide a stable and progressive framework for the development, integration, and regulation of blockchain and cryptocurrency.
The council is comprised of key policymakers, regulatory heads, and industry experts and is committed to establishing a modern and secure digital asset ecosystem in Pakistan.
Need for the establishment of the Crypto Council:
According to a BBC report, the cryptocurrency sector in Pakistan is growing rapidly, with more than 1 million Pakistanis connected to it.
The establishment of the Crypto Council was necessary to bring this growing sector under the legal umbrella and to support its development.
How will Pakistan benefit from the establishment of the Crypto Council?
According to Bilal Bin Saqib, CEO of the Pakistan Crypto Council, this will not only bring foreign investment to Pakistan but also increase revenue and foreign exchange reserves.
He said that the UAE invested $30 billion in cryptocurrency in just one year, and Pakistan can also reap similar benefits.
Furthermore, it will also benefit in terms of creating job opportunities for the youth and establishing new companies.
Crypto Business in Pakistan:
Cryptocurrency business has spread widely in Pakistan on an informal level, and it is estimated that 20 million Pakistanis are involved in the cryptocurrency business.
Cryptocurrency transactions worth $20 billion were recorded in Pakistan in the fiscal year 2020-2021.
