Cryptocurrency regulation is only in its infancy, but that doesn’t necessarily work against cryptos. The latter obtain the support of a provincial assembly in Pakistan: a first step in moving the lines on the subject in the country.
Cryptos infiltrate Pakistan from the north
The assembly of Khyber Pakhtunkhwa, a province of Northern Pakistan, is the first legislature to call for changes in the country’s official position on cryptocurrencies.
The Pakistan seems to hesitate on the position to be adopted for the regulation of the latter.
The resolution introduced on December 2, 2020 by a member of the provincial assembly, Sumera shams, could push the country’s authorities to speed up the implementation of this regulation.
The advisor to the head of government of the province of Khyber Pakhtunkhwa on information technology issues, Zia Ullah Bangash, said the document was a plea for the legalization of cryptocurrencies and mining activities in the country. The bill was passed unanimously.
A new era without papers
The person in charge of Technology Movement Pakistan, Waqar Zaka, who also describes himself as a crypto-influencer, displayed his optimism over the news and tweeted that there were only 3 provinces left to rally.
According to local dailies, the resolution indicates that trends are in favor of replacing paper money with digital equivalent.
In November 2020, the Pakistan Securities and Exchange Commission (SECP) had published a research paper on the regulation of digital assets.
The paper examined the regulatory frameworks developed in several jurisdictions around the world and described these assets as responsible for ushering in a new era of finance.
While SECP focuses on utility tokens and tokens issued by private actors, the country’s central bank has announced its intention to issue a CBDC by 2025.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
The CBDC is a bit of a buzzword for government institutions on cryptocurrency issues. State officials do not hesitate to play on the biased image of the “enemy is paper”, obscuring the real debates about the issues and the decentralization process of state currencies. Northern Pakistan opens breach to allow cryptocurrency to more easily infiltrate the country : enough to bring in a ray of hope for cryptophiles in the country.
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