Pakistan is planning to legalise cryptocurrency trading to attract foreign investment and modernise its economy. Bilal bin Saqib, chief advisor to the country’s finance minister and CEO of the newly formed Pakistan Crypto Council (PCC), revealed this in an interview with Bloomberg TV.
The government aims to create a regulatory framework that integrates blockchain technology into the financial system.
For years, Pakistan's central bank opposed cryptocurrencies owing to concerns over money laundering, fraud and financial risks. The country ranks ninth in global crypto adoption and the growing demand for digital assets has made it difficult to ignore, said Saqib.
According to him, several factors have triggered the country’s move to embrace crypto-friendly policies. Saqib told the publication that nearly 15-20 million Pakistanis are already trading digital assets. He also added that countries like the US and UAE are embracing crypto-friendly policies, making it all the more important for Pakistan to create a framework to legalise cryptocurrency.
Saqib also noted that a regulated cryptocurrency market could bring foreign investment and promote innovation. Also, legalising crypto will allow the government to tax transactions and reduce its reliance on external borrowing.
Even the International Monetary Fund (IMF) has urged Pakistan’s tax authorities to bring cryptocurrencies under the tax net to help manage debt repayment.
To ensure smooth implementation, Islamabad has recently set up the Pakistan Crypto Council (PCC). The council, led by Finance Minister Muhammad Aurangzeb, includes key officials like the governor of the State Bank of Pakistan and the chairman of the Securities and Exchange Commission.
Formulating clear regulations for crypto trading, encouraging blockchain technology in different sectors as well as protecting investors and ensuring financial stability are some of the key objectives of PCC.
Source: India Today