Pakistan has recently started exploring crypto space but because of its decentralized networking Pakistan and other developing countries are skeptical about adopting it on a wide scale. Recent news suggests that the Financial Action Task Force has suggested that Pakistan should put together a framework for regulating cryptocurrency in Pakistan.
Pakistan’s major and important banks had made Pakistan have a prejudice against crypto space. The Central Bank of Pakistan had ordered all banks and service providers to not support and use cryptocurrencies. In April of 2018, The Central Bank further stated in a Tweet saying that all the activities occurring in crypto space are supervised by the Central bank of Pakistan and that the public should be aware of its risks and problems that the crypto space has.
But with the new suggestions of the Financial Action Task Force Pakistan’s attitude towards crypto space might change. The suggestion of the Financial Action Task Force can help Pakistan tackle issues like fundings for terrorism, tax evasion, and money laundering through crypto space. Only by regulating the crypto space can Pakistan keep an eye on the activities occurring through it.
Electronic Money Institutions is introduced by the Central Bank of Pakistan. The purpose of this is to regulate the crypto space. This new suggestion by the Financial Action Task Force means that it has finally taken Pakistan off its greylist. Being on the grey list of Financial Action Task Force means that the laws are inadequate for preventing illegal activities like funding for terrorisms and money laundering etc.
The Financial Action Task Force also mentioned the cons of adopting crypto space in its official reports. It mentioned the aspects of crypto space being decentralized and unsafe, the anonymity of the parties involved in the tradings, etc.
Adopting crypto space means that Pakistan will have to accept the cryptocurrencies and value them for what they are.
The framework for the regulations will be presented in a ceremony that is being held at the State Bank of Pakistan’s office. In this ceremony, the Federal Minister for Finance, the governor of the State Bank of Pakistan and finance secretary will be present.