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Cryptocurrency In Pakistan

Cryptocurrency In Pakistan

Cryptocurrency In Pakistan – According to a report by Finance Magnets, Pakistan’s financial regulator, the Securities and Exchange Commission of Pakistan (SECP), is working on developing a legal framework for digital assets.

The SECP recently published a paper on private digital assets stating that it “welcomes comments/feedback”.

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Cryptocurrency In Pakistan

According to an official document, the SECP is considering creating “definitions for recognition of digital assets in Pakistan”. In addition, it aims to find “how to create and develop a strong global regulatory regime for digital asset management” and “put forward policy proposals for industry players and stakeholders”.

Waqar Zaka’s Shaky Claims And Crypto Conundrum

However, it is worth noting that the SECP document nowhere provides any information about the plan to create a Central Bank of Pakistan Digital Currency (CBDC). However, it should be noted that Pakistan has previously stated that it plans to have a functional CBDC by 2025.

For those who don’t know, a CBDC is basically a type of digital sovereign currency that is controlled by a country or national central bank. Several countries have recently entered the CBDC space, such as China, Japan, South Korea, and the United Kingdom.

In the article, the SECP said that digital assets are “the beginning of a new era of digital finance” and that its regulation “can only be implemented through the implementation of a new era that renews the regulatory regime [or] regulatory measures, as they are known. Regulators around the world today”.

The first of these approaches advocates “managing and restricting new products under existing law, and in some cases may even include outright bans.” The article states that in this approach, “innovators have an obligation to adapt to the existing regulatory environment.”

Alternatively, the second approach relies heavily on the “let it happen” hypothesis. This approach, the Laissez-Faire approach, requires minimal government or regulatory intervention and more than a “wait and watch” approach where rules are developed after careful observation of market behavior over a long period of time.

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Our website uses cookies and similar technologies. By using our website, you agree to the use of cookies. More information about how we use cookies can be found in our cookie policy. PESHAWAR – Pakistan’s central bank has proposed a ban on all forms of cryptocurrencies, saying the risks of trading Bitcoin, Ethereum and other cryptocurrencies outweigh the potential benefits.

A ‘risk-benefit analysis’ committee of the State Bank of Pakistan (SBP), set up following a Supreme Court directive, recently said that cryptocurrencies were depleting the country’s foreign exchange reserves and fueling illicit financing.

Pakistan’s Urdubit Exchange Shuts Down After Crypto Ban

A body comprising the Ministry of Finance, Ministry of Information Technology, Pakistan Telecommunication Authority (PTA) and Security and Exchange Commission of Pakistan (SECP) has recommended a complete ban on virtual currency and related activities in Pakistan.

India, which has the second largest holder of cryptocurrencies in the world, has moved in the same direction and plans to ban most cryptocurrencies under the proposed Cryptocurrency and Digital Currency Regulation, which is likely to be discussed in the 2010 winter session. Parliament. The legislation aims to create a framework for an official digital currency issued by the Reserve Bank of India (RBI).

However, Pakistan has no plans to introduce its own official digital currency to replace existing digital money. Instead, the authorities plan to ban all forms of cryptocurrencies, offering to block even cryptocurrency websites.

The SBP committee believes that the strengthening of regulations is necessary because the existing law governing electronic crimes, money transfers and anti-money laundering lacks criminalizing provisions on the misuse of cryptocurrencies.

The Battle For Cryptocurrency In Pakistan: Unveiling The Truth Behind The Government’s Ban And The Heroic Stand Of Waqar Zaka

Business leaders, blockchain experts and cryptocurrency influencers have opposed proposals to regulate digital currencies. They argue that a total ban would be counterproductive and further damage an already devastated economy.

Majid Aziz, former president of Karachi Chamber of Commerce and Industry (KCCI), told Asia Times that the government’s mindset of imposing restrictions to deal with the new menace is deeply flawed. “Institutions rarely analyze the results to analyze the risks and benefits of such actions,” he said. “Digital currency cannot be banned before assessing its impact on the large investments people make in the digital economy.

“In my opinion, there is an urgent need to create an International Cryptocurrency Regulatory Authority to handle crypto-related activities in the country. We should not ban cryptocurrencies because people will continue to invest in digital currencies despite the ban,” Majid added. ..

At the same time, he echoed the problem of regulators, warning: “Greed and the desire for quick money always lead to big losses, and I pray that investing in cryptocurrencies does not become another Ponzi scheme.”

Pakistan To Investigate Binance For Multi Million Dollar Crypto Scam

Waqar Zaka, a prominent cryptocurrency influencer with an online platform linked to over four million followers, recently tweeted: “There is a mind saying that crypto is leaving Pakistan $20 billion, it is not true. If there are Hundi. , why would anyone want to be on the FATF? By the way, Facebook ads on YouTube attract more dollars from countries, most of which still do not know about cryptocurrencies.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) estimates the total cryptocurrency investment in Pakistan to be $20 billion, which is more than the country’s total foreign exchange reserves currently held by the central bank.

The FPCCI policy review, released in late December, highlighted the endemic risks stemming from the lack of national regulation surrounding cryptocurrencies and other digital assets. He also noted that Pakistan’s trade and lending partners, such as China and the International Monetary Fund (IMF), have warned that unregulated blockchain technology is vulnerable to money laundering and other digital crimes.

The report also noted that the Financial Action Task Force (FATF), an intergovernmental organization that fights money laundering worldwide, has urged Pakistani authorities to better regulate its cryptocurrency industry, as most investors now use peer-to-peer (P2P) networks. . a cryptocurrency investment mechanism that makes cryptocurrency assets nearly untraceable.

Bitcoin Cryptocurrency Coin On Map Pakistan Stock Illustration 2005025024

Chainalytic, a blockchain data platform that provides data, software, services and research analytics, reported last October that Pakistan in 2020-21. has recorded a 711% growth in cryptocurrency-related investments in the financial year, which is even higher than that of India. 641. %.

The solid growth in digital currency holdings has made Pakistan one of the most dynamic cryptocurrency markets outside of Europe and the US, ranking it third in Chainalytic’s 2021 Global Cryptocurrency Adoption Index.

Chainalytic believed that Pakistan’s actual cryptocurrency holdings may be even higher than official estimates, as many residents buy bitcoins through P2P transactions, which remain largely undocumented.

Meet TripleA, a cryptocurrency and blockchain technology company, estimates that more than 9 million people, or 4.1% of Pakistan’s total population, currently own cryptocurrencies. The company says that interest in Bitcoin, judging by online searches and other indicators, has increased following the government’s discussion of new regulations for the cryptocurrency.

India, Vietnam, Pakistan Among Top Measure Of Cryptocurrency Adoption By Individuals: Chainalysis

Meet TripleA said that despite Pakistan’s growing interest in cryptocurrency, the country’s potential is limited by low banking penetration and limited point-of-stake (POS) terminals to process transactions and create new blocks on the blockchain. However, the team said that the bitcoin market is a “fast-growing sector of the economy”.

The regulatory screws are being tightened on cryptocurrency trading platforms. Last week, Pakistan’s Federal Investigation Agency (FIA) announced that it had approached Binance Holdings Limited, one of the world’s largest Bitcoin hubs, in an investigation into an alleged $100 million fraud.

The agency claimed that several thousand Pakistani investors were duped by a “fake online investment mobile application” and that their money was transferred to at least 26 suspicious Binance blockchain wallet addresses. The agency ordered Binance to provide information about these blockchain accounts and collateral.

Shortly after, FIA Director General Sanaullah Abbasi said at an SBP briefing in Karawang on January 15 that the agency would soon block cryptocurrency trading to prevent fraud and possible money laundering.

Cryptoding Pakistani: Lose Millions To Crypto Scam, Pakistan Issues Notice To Binance. Www.cryptoding.in @cryptoding

The meeting was informed that there is no legal section in the Electronic Crime Prevention Act of 2016, the Foreign Exchange Transfer Act of 1947 (FERA) or the Anti-Money Laundering Act of 2010 (AMLA) that criminalizes the misuse of cryptocurrency. .

The meeting also noted that there is no regulatory framework to allow virtual asset service providers to meet FATF requirements.

China, Bangladesh, Saudi Arabia, Egypt, Iraq, Qatar, Oman, Morocco, Algeria and Tunisia have banned cryptocurrency transactions, while 42 other countries, including Algeria, Bahrain, Bolivia, India and Pakistan, have implicitly banned digital currencies by restricting banks and cryptocurrency. exchange for digital asset trading.

In 2018, the Central Bank of Pakistan announced that it does not allow any person or organization to issue, sell, buy, exchange, or invest in or license virtual currencies such as bitcoin and others. The SBP then declared that digital currencies are not legal tender issued in bank guarantees.

Pakistan Flag Draped Over A Bitcoin Cryptocurrency Coin. 3d Rendering Stock Photo

The SBP has not only barred banks from processing, using, trading, storing, transferring value, promoting and investing in virtual currencies, but has also advised them not to facilitate cryptocurrency transactions for account holders. Now, this regulatory loop is likely to tighten and turn into a complete ban on cryptocurrencies. According to a survey conducted by KuCoin, a global digital currency exchange, one in ten digital currency investors in Pakistan prefer to receive or pay a salary.

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  1. Cryptocurrency In PakistanAccording to an official document, the SECP is considering creating "definitions for recognition of digital assets in Pakistan". In addition, it aims to find "how to create and develop a strong global regulatory regime for digital asset management" and "put forward policy proposals for industry players and stakeholders".Waqar Zaka's Shaky Claims And Crypto ConundrumHowever, it is worth noting that the SECP document nowhere provides any information about the plan to create a Central Bank of Pakistan Digital Currency (CBDC). However, it should be noted that Pakistan has previously stated that it plans to have a functional CBDC by 2025.For those who don't know, a CBDC is basically a type of digital sovereign currency that is controlled by a country or national central bank. Several countries have recently entered the CBDC space, such as China, Japan, South Korea, and the United Kingdom.In the article, the SECP said that digital assets are "the beginning of a new era of digital finance" and that its regulation "can only be implemented through the implementation of a new era that renews the regulatory regime [or] regulatory measures, as they are known. Regulators around the world today".The first of these approaches advocates "managing and restricting new products under existing law, and in some cases may even include outright bans." The article states that in this approach, "innovators have an obligation to adapt to the existing regulatory environment."Pakistan To Ban Online Services Related To CryptocurrenciesAlternatively, the second approach relies heavily on the "let it happen" hypothesis. This approach, the Laissez-Faire approach, requires minimal government or regulatory intervention and more than a "wait and watch" approach where rules are developed after careful observation of market behavior over a long period of time.Get analysis, news and updates straight to your inbox! Sign up here so you don't miss a single newsletter.Our website uses cookies and similar technologies. By using our website, you agree to the use of cookies. More information about how we use cookies can be found in our cookie policy. PESHAWAR - Pakistan's central bank has proposed a ban on all forms of cryptocurrencies, saying the risks of trading Bitcoin, Ethereum and other cryptocurrencies outweigh the potential benefits.A 'risk-benefit analysis' committee of the State Bank of Pakistan (SBP), set up following a Supreme Court directive, recently said that cryptocurrencies were depleting the country's foreign exchange reserves and fueling illicit financing.Pakistan's Urdubit Exchange Shuts Down After Crypto BanA body comprising the Ministry of Finance, Ministry of Information Technology, Pakistan Telecommunication Authority (PTA) and Security and Exchange Commission of Pakistan (SECP) has recommended a complete ban on virtual currency and related activities in Pakistan.India, which has the second largest holder of cryptocurrencies in the world, has moved in the same direction and plans to ban most cryptocurrencies under the proposed Cryptocurrency and Digital Currency Regulation, which is likely to be discussed in the 2010 winter session. Parliament. The legislation aims to create a framework for an official digital currency issued by the Reserve Bank of India (RBI).However, Pakistan has no plans to introduce its own official digital currency to replace existing digital money. Instead, the authorities plan to ban all forms of cryptocurrencies, offering to block even cryptocurrency websites.The SBP committee believes that the strengthening of regulations is necessary because the existing law governing electronic crimes, money transfers and anti-money laundering lacks criminalizing provisions on the misuse of cryptocurrencies.The Battle For Cryptocurrency In Pakistan: Unveiling The Truth Behind The Government's Ban And The Heroic Stand Of Waqar ZakaBusiness leaders, blockchain experts and cryptocurrency influencers have opposed proposals to regulate digital currencies. They argue that a total ban would be counterproductive and further damage an already devastated economy.Majid Aziz, former president of Karachi Chamber of Commerce and Industry (KCCI), told Asia Times that the government's mindset of imposing restrictions to deal with the new menace is deeply flawed. "Institutions rarely analyze the results to analyze the risks and benefits of such actions," he said. "Digital currency cannot be banned before assessing its impact on the large investments people make in the digital economy."In my opinion, there is an urgent need to create an International Cryptocurrency Regulatory Authority to handle crypto-related activities in the country. We should not ban cryptocurrencies because people will continue to invest in digital currencies despite the ban," Majid added. ..At the same time, he echoed the problem of regulators, warning: "Greed and the desire for quick money always lead to big losses, and I pray that investing in cryptocurrencies does not become another Ponzi scheme."Pakistan To Investigate Binance For Multi Million Dollar Crypto ScamWaqar Zaka, a prominent cryptocurrency influencer with an online platform linked to over four million followers, recently tweeted: "There is a mind saying that crypto is leaving Pakistan $20 billion, it is not true. If there are Hundi. , why would anyone want to be on the FATF? By the way, Facebook ads on YouTube attract more dollars from countries, most of which still do not know about cryptocurrencies.The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) estimates the total cryptocurrency investment in Pakistan to be $20 billion, which is more than the country's total foreign exchange reserves currently held by the central bank.The FPCCI policy review, released in late December, highlighted the endemic risks stemming from the lack of national regulation surrounding cryptocurrencies and other digital assets. He also noted that Pakistan's trade and lending partners, such as China and the International Monetary Fund (IMF), have warned that unregulated blockchain technology is vulnerable to money laundering and other digital crimes.The report also noted that the Financial Action Task Force (FATF), an intergovernmental organization that fights money laundering worldwide, has urged Pakistani authorities to better regulate its cryptocurrency industry, as most investors now use peer-to-peer (P2P) networks. . a cryptocurrency investment mechanism that makes cryptocurrency assets nearly untraceable.Bitcoin Cryptocurrency Coin On Map Pakistan Stock Illustration 2005025024Chainalytic, a blockchain data platform that provides data, software, services and research analytics, reported last October that Pakistan in 2020-21. has recorded a 711% growth in cryptocurrency-related investments in the financial year, which is even higher than that of India. 641. %.The solid growth in digital currency holdings has made Pakistan one of the most dynamic cryptocurrency markets outside of Europe and the US, ranking it third in Chainalytic's 2021 Global Cryptocurrency Adoption Index.Chainalytic believed that Pakistan's actual cryptocurrency holdings may be even higher than official estimates, as many residents buy bitcoins through P2P transactions, which remain largely undocumented.Meet TripleA, a cryptocurrency and blockchain technology company, estimates that more than 9 million people, or 4.1% of Pakistan's total population, currently own cryptocurrencies. The company says that interest in Bitcoin, judging by online searches and other indicators, has increased following the government's discussion of new regulations for the cryptocurrency.India, Vietnam, Pakistan Among Top Measure Of Cryptocurrency Adoption By Individuals: ChainalysisMeet TripleA said that despite Pakistan's growing interest in cryptocurrency, the country's potential is limited by low banking penetration and limited point-of-stake (POS) terminals to process transactions and create new blocks on the blockchain. However, the team said that the bitcoin market is a "fast-growing sector of the economy".The regulatory screws are being tightened on cryptocurrency trading platforms. Last week, Pakistan's Federal Investigation Agency (FIA) announced that it had approached Binance Holdings Limited, one of the world's largest Bitcoin hubs, in an investigation into an alleged $100 million fraud.The agency claimed that several thousand Pakistani investors were duped by a "fake online investment mobile application" and that their money was transferred to at least 26 suspicious Binance blockchain wallet addresses. The agency ordered Binance to provide information about these blockchain accounts and collateral.Shortly after, FIA Director General Sanaullah Abbasi said at an SBP briefing in Karawang on January 15 that the agency would soon block cryptocurrency trading to prevent fraud and possible money laundering.Cryptoding Pakistani: Lose Millions To Crypto Scam, Pakistan Issues Notice To Binance. Www.cryptoding.in @cryptodingThe meeting was informed that there is no legal section in the Electronic Crime Prevention Act of 2016, the Foreign Exchange Transfer Act of 1947 (FERA) or the Anti-Money Laundering Act of 2010 (AMLA) that criminalizes the misuse of cryptocurrency. .The meeting also noted that there is no regulatory framework to allow virtual asset service providers to meet FATF requirements.China, Bangladesh, Saudi Arabia, Egypt, Iraq, Qatar, Oman, Morocco, Algeria and Tunisia have banned cryptocurrency transactions, while 42 other countries, including Algeria, Bahrain, Bolivia, India and Pakistan, have implicitly banned digital currencies by restricting banks and cryptocurrency. exchange for digital asset trading.In 2018, the Central Bank of Pakistan announced that it does not allow any person or organization to issue, sell, buy, exchange, or invest in or license virtual currencies such as bitcoin and others. The SBP then declared that digital currencies are not legal tender issued in bank guarantees.Pakistan Flag Draped Over A Bitcoin Cryptocurrency Coin. 3d Rendering Stock Photo