Pakistan has launched a new regulatory system allowing cryptocurrency firms to apply for licenses. This step is aimed at both domestic and foreign exchanges, promoting foreign investment while ensuring compliance with international standards.
New Licensing System
Pakistan has introduced a new licensing system aimed at regulating Virtual Asset Service Providers (VASPs) both domestic and foreign. The oversight of this initiative is handled by the Pakistan Virtual Asset Regulatory Authority (PVARA), consisting of key government officials.
With an emphasis on compliance, foreign exchanges are encouraged to apply, which is expected to enhance Pakistan's financial standing. Jameel Ahmad, Governor of the State Bank of Pakistan, highlights the potential of this framework.
> "A legal framework for virtual assets was necessary to evaluate and manage risk very carefully while not missing out on the opportunity." — Jameel Ahmad, Governor, State Bank of Pakistan
Economic Opportunities
Initial responses to this framework suggest a potential boost in financial transparency and integration of leading technology partners. Observers note this step might position Pakistan as a regional tech-savvy hub for digital assets.
Significance of New Regulation
The emergence of this regulatory system also signals future economic opportunities, leveraging Pakistan's strategic centrality in South Asia. As regulations mature, further market and policy evaluations will reveal the outcomes of the new framework that opens doors for crypto licensing.
The new licensing system in Pakistan could significantly transform the cryptocurrency market and attract foreign investment while ensuring proper regulation and risk management.
