Pakistan is making significant strides towards regulating the cryptocurrency space, despite the fact that cryptocurrency remains illegal in the country.
Crypto Regulation Draft Underway in Pakistan
On June 2, the Pakistan Crypto Council (PCC) held a meeting in Islamabad to draft a regulatory framework for digital and virtual assets. Key figures such as Finance and Revenue Minister Senator Muhammad Aurangzeb, Governor of the State Bank of Pakistan (SBP), and other officials attended the meeting.
Goals of the Regulatory Draft
The regulatory draft aims to:
* Formalize the crypto sector, currently operating in a legal grey area. * Establish clear licensing rules and compliance mechanisms. * Protect retail investors from fraud and manipulation. * Encourage financial innovation through responsible blockchain adoption. * Build a future-ready digital financial infrastructure.
Key Players and Legal Status of Crypto
Despite progressive regulatory talks, crypto remains officially banned in Pakistan. On May 30, the National Assembly reaffirmed the ban, classifying all crypto activity as illegal. The State Bank of Pakistan continues to prohibit banks and financial institutions from engaging in crypto-related activities.
The discussions surrounding the new draft highlight Pakistan's ambition to create a modern financial framework ready to incorporate emerging technologies. While the legal status of cryptocurrencies remains unclear, new initiatives may pave the way for legal adoption in the future.
