Pakistan legalizes crypto, aiming to attract investment, modernize finance, and become a key player in digital assets.
Pakistan is currently taking steps to legitimize cryptocurrencies and the blockchain after a lengthy period of rejecting the technology. One of the numerous nations having a strict stance on blockchain technology and cryptocurrency use in 2023 was Pakistan.
The nation’s Minister of State for Finance and Revenue. Aisha Ghaus Pasha, even went so far as to say in public that. “They will never legalize” cryptocurrency in the nation.
Today, the Pakistani government approved a proposed amendment to the State Bank of Pakistan (SBP) Act. The leading bank in the state and this policy are about to alter. will have the ability to introduce its first virtual currency.
Pakistan’s Major Policy Shift On Crypto
The Express Tribune claims that government sources have alluded to a shift in the policy of the current administration. There are now plans to amend the SBP Act, with the goal of enabling. The state bank to introduce a digital currency.
The SBP has regularly issued cautions against the usage and promotion of digital currencies and has constantly rejected their acceptance. The present concept allows for the addition of a digital currency by the government and conventional financial institutions.
The idea is to promote a central bank that can manage the country’s finances physically and digitally.
Pakistan And Its History Of Crypto Prohibition
The central bank of Pakistan has long been in the forefront of the resistance to cryptocurrency use. Is Citing its unpredictability and regulatory challenges.
The SBP of Pakistan issued an order in 2018 prohibiting banks and other financial institutions from conducting. Cryptocurrency-related transactions or offering services to cryptocurrency exchanges. The popular cryptocurrencies. Like Bitcoin and Ether are stated. In the 2018 decision to not be recognized. As legal tender in Pakistan.
As stated by the country’s leading financial authorities. Because of the high amount of privacy. That cryptocurrencies offer. Criminal actors may utilize them for illegal purposes. This SBP ruling restricted bitcoin activity in Pakistan and made it impossible for cryptocurrency exchanges to operate.
Banning Crypto To Avoid ‘Grey List’
The Financial Action Task Force’s (FATF). Requirements are linked to the government’s. Initial hesitancy to authorize cryptocurrency transactions.
The task panel has stated that Pakistan would not legalize Bitcoin or other cryptocurrencies.
It will not be included. To Its “grey list.” Local banks and financial. Institutions have been ordered. By the state banks to notify their clients of this directive.
Furthermore, because they are dangerous and illegal. Transfers from overseas exchanges are restricted.
The government will submit changes to Section 24, which deals with the issuance, control, and administration of digital currencies. If the idea is accepted. A digital currency can only be issued and become legal tender.. By the SBP of Pakistan in accordance with the SBP Act.
Read more: Pakistan Moves to Legalize Cryptocurrency in Policy Shift
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