Pakistan Takes Action to Control Crypto
In an effort to draw in international investors and establish itself as a pioneer in blockchain-powered finance, Pakistan is taking major measures to regulate cryptocurrencies.
Pakistan wants to improve its economy and draw in international investment by establishing a clear regulatory framework.
The nation wants to take advantage of its young population—60% of whom are under 30—and its current crypto adoption rate, which is tenth in the world.
A key component of this endeavor is the creation of the Pakistan Crypto Council (PCC). Under the direction of Finance Minister Muhammad Aurangzeb, the council will create regulations, safeguard investors, and promote blockchain innovation in a number of industries.
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Global politics, especially those that support cryptocurrency in nations like the United States and the United Arab Emirates, have caused Pakistan to reevaluate its position on digital assets. One important driver of this change has been identified as U.S. President Donald Trump's pro-crypto policies.
Pakistan's financial difficulties, which include a heavy reliance on IMF loans, serve as another driving force. By taxing cryptocurrency gains, legalization may create a new source of income and help close budget shortfalls.
The purpose of the Pakistan Crypto Council (PCC) is to supervise the financial industry's adoption of digital assets and blockchain technology. Important representatives from the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan are on the council.
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The framework seeks to draw in foreign investment by offering pro-business policies and regulatory clarity. While safeguarding investors, it would prioritize anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
In order to implement best practices and guarantee adherence to international standards, the PCC will work with international organizations.
There is a considerable local demand for cryptocurrency, as evidenced by the estimated 15 to 20 million Pakistanis who now use it.
Pakistan may create smooth cross-border payment networks and lessen its need on conventional banking institutions by utilizing blockchain technology for remittances and other purposes.
Pakistan's decision to regulate cryptocurrency is a reflection of its goal to dominate the global blockchain and Web3 ecosystem, using its young population and widespread cryptocurrency usage to spur innovation and economic progress.