In an attempt to bolster its position in the global cryptocurrency market, Pakistan is developing measures to legalize digital assets. This move could increase foreign investment and stimulate economic growth.
Why Pakistan Wants to Legalize Cryptocurrencies
The legalization initiative has been put forward by the newly appointed CEO of the Pakistan Crypto Council, Bilal bin Saqib. In an interview with Bloomberg, he emphasized the importance of establishing clear regulations to support the country's burgeoning digital asset ecosystem. With an estimated 15 to 20 million Pakistanis already holding digital assets, and transaction volumes reaching billions of dollars annually, Saqib highlighted that legalizing and regulating the sector could unlock substantial economic opportunities.
New Regulatory Strategy
Pakistan plans to implement regulatory sandboxes, where crypto startups can operate under fast-track licenses. This will allow new solutions to enter the market without compromising oversight. Pakistan is also studying the regulatory model of the United Arab Emirates and aims to adopt similar steps to attract cryptocurrency firms. Additionally, the state is preparing a pro-growth tax policy that avoids restrictive measures and attracts crypto entrepreneurs.
International Cooperation
Pakistan is seeking partnerships with countries such as Nigeria and Turkey to improve its policies. Interaction with Nigeria will help find a balance between innovation and financial stability, while Turkey's experience in integrating digital assets provides important lessons for Pakistan.
Pakistan's initiative to legalize cryptocurrencies promises significant economic benefits and strengthens the country's financial position globally. This move demonstrates a commitment to adapting to change and becoming a leading player in the digital economy.
