Pakistan needs to work towards a comprehensive crypto regulatory framework, the president of the FPCCI said.
The President of the Pakistan Chamber of Commerce and Industry (FPCCI), Nasir Hayat, announced in a press conference yesterday that the total value of cryptocurrency assets owned by Pakistani citizens is around $ 20 billion.
The assessments of the digital currencies made by the Pakistani regulator are based on a research paper by the Chamber of Commerce, according to a local news report.
The president highlighted the growth of the crypto industry in the country over the past two years and called on the government to develop a framework for regulating crypto and safeguarding consumer interests.
Hayat pointed out that India has already begun to implement restrictions on the crypto sector. According to reports, the subcontinent will introduce a blanket ban on holding and trading cryptocurrencies in the country, although the use of the underlying blockchain technology will be encouraged.
India is also in the process of laying the foundation for a digital rupee – the country’s central bank digital currency.
A Chainalysis report released earlier this year revealed that Pakistan is one of the many countries in South Asia that is experiencing tremendous growth in cryptocurrency adoption. Pakistan ranked third behind Vietnam and India in the Chainalysis Global Crypto Adoption Index 2021.
The index evaluated the performance of each country based on three metrics: the transferred crypto value in the chain, the transferred retail value in the chain, and the peer-to-peer exchange trading volume.
Regulation, or lack thereof, has become a major obstacle to widespread adoption in countries such as India, Pakistan and Bangladesh. The government’s inability to find ways to control the risks associated with cryptocurrencies has led regulators to consider a blanket ban instead.
In October 2021, the Pakistani High Court of Sindh called on the Ministry of Information Technology and Law to work with the Securities and Exchange Commission of Pakistan (SECP) and the central bank to create a comprehensive framework for cryptocurrency regulation in the country. SCEP announced that it was considering crypto legislation last month.