Pakistanis have been investing a significant amount in digital assets despite the lack of regulation. Research claims that Pakistanis have $20 billion worth of crypto assets, which is more than the foreign reserves their central bank holds.
As Study shows that Pakistanis have $20 billion in cryptocurrency, the government is urging them to regulate it
According to Pakistan Frontier and other media outlets, the Pakistani government has more cryptocurrency than foreign reserves. This is according to a report released by the Federation of Pakistan Chambers of Commerce and Industry. The study, produced by the association’s Policy Advisory Board (PAB), has estimated that Pakistanis have held cryptocurrency worth $20 billion in the 2020-21 period.
These authors note that bitcoin and other digital currencies have seen a rapid rise in popularity over the past few years. With a 711% market growth in 12 months, Pakistan climbed to third place in this year’s Global Crypto Adoption Index calculated by blockchain forensics firm Chainalysis. It is only behind Vietnam and India.
But the real number of cryptocurrency holdings could be higher than what was reported in the PAB Report. Peer-to-peer transactions are popular in the country and many people have not been aware of these purchases, according to the Business Recorder. Cryptocurrencies are still a gray area in Pakistan as the country’s current legislation does not cover the digital assets.
FPCCI President NasirhayatMagoon, who was speaking at a press conference, asked Islamabad about a new government policy for cryptocurrency transactions. Magoon noted that India’s neighbor has made some progress in implementing rules. Magoon insists that regulations like these are necessary so investors have the opportunity to trade coins within Pakistan instead of Dubai.
According to the report, Pakistan should adopt a legal structure that is consistent with the International Monetary Fund and Financial Action Task Force guidelines. The study has been released after Pakistan’s Minister of State for Parliamentary Affairs Ali Muhammad Khan indicated in October that the government is not opposed to cryptocurrency investments in general. Pakistan’s courts have also called on the executive and legislative powers to introduce crypto regulations.
Do you expect authorities in Pakistan to soon regulate the country’s crypto space? Please let us know your thoughts in the comment section.
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