Copy link
Increase text size
Decrease text size
Link copied

Pakistan’s SEC explores options for regulating its cryptocurrency industry

Pakistan views cryptocurrencies as the start of a new era of digital finance and is looking for ways to effectively regulate the crypto industry.

Faisal Mosque, Islamabad, Image by: Wikimedia Commons

Mon, 16 Nov 2020, 07:17 am UTC

Unlike a few countries that imposed a ban on cryptocurrency, the Pakistan government recognizes the potential of digital currencies, such as Bitcoin(BTC) and Ethereum (ETH), and is now looking for ways to regulate the industry. This stance is also confirmed by the country’s central bank which reportedly confirmed that it is not planning to impose a crypto ban.

On November 6, the Securities and Exchange Commission of Pakistan (SECP) published a consultation paper on regulating cryptocurrencies like Bitcoin, Cointelegraph reported. The paper discusses different regulatory frameworks adopted by other countries and included the Financial Action Task Force (FATF) recommendations such as existing regulations in the U.S., Hong Kong, and Malaysia.

The SECP said that digital assets are the “start of a new era of digital finance” but also emphasized the need for a new regulatory regime for the nascent industry. The paper also specifically clarified that its focus does not include central bank-issued crypto assets.

“This consultation paper focuses exclusively on non-government or non-central bank issued crypto assets and not on central bank digital currencies [CBDCs],” SECP’s paper noted, according to Bitcoin.com.

SECP’s consultation paper discussed two approaches for cryptocurrency regulations. The first approach is to regulate or restrict them based on existing regulations “and may in some instances even entail outright banning.”

Another way is to regulate cryptocurrency “based on the conjecture of ‘let-things-happen’ approach, described by the Commodity Futures Trading Commission (CFTC) as the ‘do-not-harm’ approach … where the financial sector is considered as dynamic and the associated need to innovate is strongly emphasized.” The SECP said that it is leaning towards the second approach but it still welcomes inputs and comments and that it intends to hold multiple discussions on the issue.

It is assuring to note that, unlike other countries, Pakistan did not impose a total ban on crypto. A lawyer of the State Bank of Pakistan clarified that while the central bank issued a warning about dealing in cryptocurrencies, it did not ban these digital assets.

On April 6, 2018, Pakistan’s central bank issued circular instructing banks and payment providers “to refrain from processing, using, trading, holding, transferring value, promoting and investing in virtual currencies/tokens.” In addition, the circular said that financial institutions “will not facilitate their customers/account holders to transact in VCs/ICO tokens. Any transaction in this regard shall immediately be reported to [the] Financial Monitoring Unit (FMU) as a suspicious transaction.”

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • GeorgeAnderson
  • 2020.11.20 19:09:24
Because of my zeal to give my family a better life, I searched for how to invest in bitcoin so I can earn more money, I came across Legit Crypto Traders email address and I emailed them to guide me on how to invest in bitcoin and they explained everything to me it's was simple and then I invested $1,000 dollars and 5 days after I got $10,000 dollars I was very happy because now i can take good care of my family. If you want to invest in bitcoin Email them now at [email protected] or WhatsApp +1(256)251-3614 and you can invest with any amount of money such as 

$100 dollars to get $1,000 dollars 

$200 dollars to get $2,000 dollars

$500 dollars to get $5,000 dollars

$1,000 dollars to get $10,000 dollars

$5,000 dollars to get $50,000 dollars

$10,000 dollars to get $100,000 dollars

$50,000 dollars to get $500,000 dollars

$100,000 dollars to get $1,000,000 dollars
  • 0
  • ·
  • 0
More
  • Bitcoin (BTC) $36,642.50 (+1.08%)
  • Ethereum (ETH) $1,257.41 (+0.94%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Cardano (ADA) $0.371500 (-3.70%)
  • Litecoin (LTC) $152.14 (+5.75%)
  • Bitcoin (BTC) $36,642.50 (+1.08%)
Jan 28, 2021 (Thursday)
10:50
BTC Surges by 1.07% Within 5 Mins, Marking 31,495 USDT
10:47
Flare To Integrate Doge Prior To Network Launch
10:33
Investors In South Korea prefer XRP Over Ethereum – Messari Report
09:59
BTC Tops List Of Crypto Net Inflows With $174.10 Mln In Past 18 Hours
09:57
Cosmos SDK v0.41.0 and Gaia v4.0.0 releases are out, according to an official post.
09:27
UPbit has suspended deposit and withdrawal of BSV due to the system maintenance of wallet.
09:19
BTC Surges by 1.03% Within 5 Mins, Marking 31,204.18 USDT
09:06
CoinNess DeFi Report: Assets Locked In DeFi Mark $36.07 Billion
08:54
Huobi Global To Launch HUSD Trading Pairs Of YFI, SUSHI, KAVA, AAVE, MKR, THETA And DOGE
08:51
PLM token holders can claim SDN tokens at a 1:1 ratio, according to PolkaWorld.
08:25
Wing Finance: Proposal WIP-25 Passed
08:09
OPIUM, governance token of on-chain derivatives protocol Opium now is launched on the Ethereum mainnet and can be traded.
07:55
Loopring To Distribute Staking Rewards Next Week
07:50
Justin Sun Will Buy $1M GME
07:14
Due to the wallet upgrade, Huobi Global has now suspended the deposits and withdrawals of KSM.
07:10
OKEx To Enable PRQ/USDT Trading Pair
06:56
Cover Protocol Collaborate With Dollar Protocol
06:54
Grayscale Partners With Bloomberg To Hold Crypto Summit
06:50
Huobi Global To Removal Selected Trading Pairs
06:48
Coinbase Custody Supports Deposits And Withdrawals For NKN
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft