Pakistan Set to Regulate Crypto Exchanges; Reversing Ban?

Wilfred Michael 

Wilfred Michael

News reporter

01 April 2019,
12:16
Pakistan Set to Regulate Crypto Exchanges; Reversing Ban?

Time heals all wounds, and that is the sentiment within the Pakistani cryptocurrency ecosystem at the start of this new week.

According to a report by a local news agency, Express Tribune, the Pakistan Federal government has decided to introduce a new set of laws for Electronic Money Institutions (EMIs) which include cryptocurrency exchanges.

On the surface, the development may seem just like every other news regarding the regulation of cryptocurrency exchanges in recent times, but it has even more significance in the case of Pakistan.

When the country reportedly banned the industry in April 2018, the State Bank of Pakistan declared that “no entity is currently licensed or authorized by SBP to offer money remittance services and products in Pakistan using cryptocurrencies.”

The regulators also added that financial institutions should not offer services to those using cryptocurrencies while on a more serious note, individuals found dealing with cryptocurrencies would be subject to prosecution.

Nearly, one year later though, the Pakistani government will according to the latest report hold a meeting today to mark the inauguration of new rules that will oversee the activity of cryptocurrency exchanges.

Under the new regulations, the Pakistani government will issue licenses to EMIs and request that they comply with the States Electronic Money Regulations. These rules are in line directives and standards set by the Financial Action Task Force (FATF), and the country believes that it should be enough to reduce cryptocurrency-related crimes in the country.

What will the regulations mean for the Pakistani cryptocurrency ecosystem?

Well, one of them will likely be that the country’s citizens will finally get a chance to use cryptocurrencies without having to use Virtual Private Networks (VPNs), foreign bank accounts or worry about breaching the government’s order.

Such freedom will also introduce new users to the cryptocurrency space as any talks of the innovative payment method being “illegal” would have been whitewashed by the same government who labeled it as such.

That should signal the beginning of happy times for the local cryptocurrency ecosystem and will represent another significant boost for the global community, already enjoying the improved market performances since the turn of the year.

In a development similar to Pakistan’s, we reported last month that Canada has also rolled out proposed regulations for cryptocurrency exchanges.

 

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