Pakistan must work towards a comprehensive crypto regulation framework, the FPCCI President said
In a press conference yesterday, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Nasir Hayat has announced that the combined value of cryptocurrency assets owned by Pakistani citizens stands at around $20 billion.
The digital currency valuations by the Pakistani regulator are based on the Chamber of Commerce’s research paper, a local news report revealed.
Highlighting the growth of the crypto industry in the country over the past two years, the President urged the government to develop a framework for regulating crypto and securing consumer interests.
Hayat pointed out that India has already begun implementing restrictions on the crypto sector. Reports suggest that the subcontinent will implement a blanket ban on holding and transacting cryptocurrencies in the country, though the use of the underlying blockchain technology will be encouraged.
India is also in the process of laying the foundations for a Digital Rupee – the country’s central bank digital currency.
A Chainalysis report published earlier this year revealed that Pakistan is one of the many countries in South Asia that are experiencing tremendous growth in crypto adoption. Pakistan ranked third in the 2021 Chainalysis Global Crypto Adoption Index behind Vietnam and India.
The index evaluated each country’s performance on three metrics: the on-chain crypto value transmitted, the on-chain retail value transferred and the peer-to-peer exchange trade volume.
Regulation, or the lack of it, has become a major barrier to widespread adoption in countries like India, Pakistan and Bangladesh. The government’s inability to find ways to control the risks associated with cryptocurrencies has prompted regulators to instead consider a blanket ban.
In October 2021, Pakistan’s High Court of Sindh urged the Ministry of Information Technology and Law to work with the Securities and Exchange Commission of Pakistan (SECP) and the central bank to create a comprehensive framework for cryptocurrency regulation in the country. The SCEP revealed that it has been considering crypto legislation last month.