- The Pakistan SEC is seeking to formulate a regulatory framework.
- The SECP highlighted that the framework is important to assess the potentials of crypto while still protecting investors.
A report on Thursday has informed that the Pakistan authorities are considering creating a regulatory framework to govern the trading of digital currencies in the country. Precisely, the development was initiated by the country’s Securities and Exchange Commission (SECP), reportedly marking the first time a regulatory body makes such a move to govern cryptos in the country.
Pakistan SEC to formulate a framework for crypto
The development today comes as the country’s authorities are preparing to enter a new era of digital finance. SECP acknowledged the growing market valuation and landscape of cryptocurrencies, adding that digital currencies can bring innovations to the financial sector. However, the potentials can only be harnessed with frameworks set in place to regulate the market while still ensuring that participating investors are protected from any associated risk.
As such, the regulator is seeking proposals to formulate a regulatory framework for the cryptocurrency market. The SECP also planned to “engage with market participants and welcome industry feedback in deciding how to regulate the digital assets domain.” The Pakistan regulator will also examine regulatory frameworks already adopted in other countries for regulating crypto assets.
The need for the regulatory response to the crypto market is driven by the growing interest, participation, and investments in digital currency. Also, cryptos aren’t included in the current regulatory framework, besides they can impact the country’s financial industry, the SCEP added.
“Crypto Assets are the start of a new era of Digital Finance and demand innovative regulatory measures and approaches by regulators across the world. This could only be possible by the initiation of a new era that re-invents regulatory regime/measures as they are known to the regulators globally today.”