- Pakistan establishes a National Crypto Council to oversee digital assets
- The country has more than 20 million digital asset users
- Before last year, both the government and the State Bank of Pakistan were against legalizing cryptocurrencies
On February 25, Pakistan’s Finance Ministry announced plans to establish a National Crypto Council designed to regulate and grow the country’s digital asset scene. The latest development seems to have started when Finance Minister Muhammad Aurangzeb received a foreign delegation, which included US President Donald Trump’s experts on digital assets.
With this move, Pakistan seeks to address the growing interest in cryptocurrencies among its population, in addition to aligning the country with global financial standards.
The National Crypto Council’s job would be to formulate comprehensive policies to guide the adoption and regulation of digital assets in Pakistan, as well as to address challenges related to financial security, risk mitigation, and compliance with international guidelines – particularly those set by the Financial Action Task Force (FATF).
International Collaboration and User Growth
Another stated aim of this effort will be to work with other nations. The goal is to develop standardized frameworks for digital economic activities on a global scale.
The government estimates that there are over 20 million active users at the moment facing challenges such as high transaction fees and regulatory uncertainty.
A complete policy change
This policy shift is significant, especially considering the government and the State Bank of Pakistan (SBP) had both opposed cryptocurrency legalization until last year. Historically, the country had a negative stance toward crypto.
For instance, in 2018, the State Bank of Pakistan prohibited banks and financial institutions from facilitating cryptocurrency transactions, citing concerns over potential misuse for illicit activities. This was influenced by FATF’s directives, as Pakistan wanted to avoid being placed on the organization’s grey list.
A former finance minister even stated that cryptocurrencies would never be allowed in Pakistan. However, the current finance minister recently suggested a shift, calling for open discussion before meeting with a foreign delegation.
It now appears that by creating the National Crypto Council, Pakistan is aiming to build a secure, transparent, and compliant environment for digital assets. This approach seeks to encourage innovation while protecting against financial crimes.
We’ll have to wait and see how this will turn out in the end, but there is no denying this is good news for the millions of digital asset users in the country.
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