For what reason does Pakistan intend to legalize cryptocurrencies? three main causes
Pakistan intends to legalize cryptocurrency trading in order to modernize its economy and draw in foreign investment. In an interview with Bloomberg, Bilal bin Saqib, the CEO of the recently established Pakistan Crypto Council (PCC) and chief counselor to the nation’s finance minister, disclosed this.
To incorporate blockchain technology into the financial system, the government wants to develop a regulatory framework. Pakistan’s central bank has long been against cryptocurrencies because of worries about financial dangers, fraud, and money laundering. According to Saqib, the nation is ninth in the world for the adoption of cryptocurrencies, and the rising demand for digital assets has made it hard to ignore.
He claims that several factors have led the nation to adopt laws that are beneficial to cryptocurrency.
Widespread adoption: Approximately 15–20 million Pakistanis are currently engaged in digital asset trading. Furthermore, in order for Pakistan to remain competitive, nations like the US and the UAE are adopting crypto-friendly regulations.
Economic growth: Additionally, a regulated cryptocurrency market may attract international capital and foster innovation. Legalizing cryptocurrency will also lessen the government’s dependency on outside borrowing and enable it to tax transactions.
IMF recommendation: In order to assist with debt repayment, the International Monetary Fund (IMF) has also asked Pakistan’s tax authorities to include cryptocurrency gains under the tax net.
ESTABLISHMENT OF PAKISTAN CRYPTO COUNCIL
The Pakistan Crypto Council (PCC) was established in Islamabad to guarantee a seamless deployment. The chairman of the Securities and Exchange Commission and the governor of the State Bank of Pakistan are among the important authorities on the council, which is headed by Finance Minister Muhammad Aurangzeb.
Some of PCC’s main goals include creating clear regulations for cryptocurrency trading, promoting blockchain technology throughout industries, safeguarding investors, and maintaining financial stability.
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