Pakistan has moved forward with the establishment of a new regulatory body that will oversee cryptocurrencies, particularly Bitcoin. This event marks a significant shift in the country's financial landscape.
Establishment of Regulatory Authority
The federal cabinet of Pakistan has approved the formation of the Virtual Assets Regulatory Authority to effectively oversee Bitcoin and other cryptocurrencies. This step is aimed at formalizing activities in the cryptocurrency sector and aligning with international financial standards.
Rules and Directions
The newly established authority will function as an independent regulator responsible for licensing and monitoring virtual asset service providers. The Minister of State for Blockchain and Crypto stated that the authority will operate in full alignment with the Financial Action Task Force (FATF) guidelines.
Expected Economic Changes
With the introduction of the new regulatory body, Pakistan plans to allocate 2,000 megawatts of surplus electricity for Bitcoin mining operations, positioning the country as a contender in the blockchain industry. This is expected to attract significant investments into Pakistan's digital economy, which, according to historical data from other nations, can lead to positive economic impacts.
The creation of the Virtual Assets Regulatory Authority in Pakistan aims to enhance oversight of cryptocurrencies, which can significantly increase the legitimacy of the market and attract new investments.