- Pakistan is progressing toward the regulation of crypto, and Muhammad Saleem Memon labeled it as a positive move for the economy.
- Not withstanding limitations in the central bank, usage is increasing with 20 million users and $20 billion in 2021. Regulation would cause investments to increase.
- A legal framework is in development with the Pakistan Crypto Council, and the Finance Minister now is inclined towards regulation.
Pakistan is heading towards making clear-cut laws for cryptocurrency, and most people are of the view that the right laws will boost the growth of the industry.
Muhammad Saleem Memon, HCSTSI President of Hyderabad Chamber of Small Traders & Small Industry, appreciated the government for initiating this move. He termed it a major step that would transform the economy of the country.
Pakistan Crypto Adoption and Challenges
Pakistan’s central bank continues not to permit banks and financial institutions to trade with crypto for fear of fraud, money laundering, and lack of regulation.
Despite this, Memon feels that the recent appointment of Bilal Bin Saqib as Chief Advisor to the Finance Minister for the Pakistan Crypto Council is a good move for the digital economy of the country.
Memon highlighted that cryptocurrency assets are increasingly gaining popularity across the globe, with nations such as the UAE, Japan, and the US already making some headway in this regard. He added that Pakistan was in 2021 ranked third globally in terms of crypto adoption, with $20 billion worth of transactions being done that year.
He opined that effective regulations would be able to attract further investment, grow foreign reserves, and render transactions more transparent. Blockchain technology would also benefit the nation’s financial system by providing more secure payments and less corruption.
There are currently 20 million Pakistanis using crypto, but they still struggle with high fees on transactions. Memon hopes that new government policies will offer improved conditions for traders and new investors entering the market.
Government’s Approach Towards Regulation
The Pakistan Crypto Council, comprising government, regulatory agency, and expert representatives, is engaged in the construction of a legal framework for the sector. The council is working to establish policies that comply with international standards and are fair and effective in the regulation of crypto.
This comes after a meeting with former US President Donald Trump, who has been at the forefront of advocating for crypto to be a key feature of financial development. The meeting addressed issues such as the adoption of crypto and how regulations can be made to fit US policy.
Previously, Pakistan’s Finance Ministry had been hesitant to regulate crypto, but Finance Minister Muhammad Aurangzeb has shown a receptive mindset now. He has concurred with the need for an appropriate framework to regulate the new crypto economy.
All countries have begun developing crypto-friendly policies, most significantly following Trump’s 2024 election. With ongoing efforts, Pakistan can have a well-defined regulatory policy in place that promotes the crypto market but with security and transparency.
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