Pakistan may join other nations in its crypto efforts or totally ban cryptos, as the federal government has constituted three sub-committees to decide the future of cryptocurrencies and related businesses in the country.
Finance Secretary Hamed Yaqoob Sheikh chaired a meeting, which gave the start to the three sub-committees, which would ultimately decide whether to legalize or ban cryptocurrency business. Furthermore, the sub-committees would try to cover all aspects of the cryptocurrency business and come up with recommendations on Pakistan’s crypto regulatory policy.
The proposal would then go to Yaqoob’s office for a final decision.
The structure of the three committees includes members of the State Bank of Pakistan (SBP), the Federal Investigation Agency (FIA), and the Pakistan Telecommunication Authority (PTA). The first sub-committee would evaluate whether cryptocurrencies can be banned under the current laws, as well as recommend methods for banning cryptos, while not stopping technological advancements.
The other two sub-committees would deal with whether Pakistan would lag behind other countries in the technological advancement race if cryptocurrency is banned in the country, under the chairmanship of SBP Deputy Governor Saima Kamal, with representatives of the Ministry of Information Technology, the Securities and Exchange Commission of Pakistan, and the PTA joining efforts.
Pakistan’s current crypto regime
The State Bank of Pakistan provided an anti-crypto stance, with SBP Governor Reza Baqir noting that “around the world, there is a lot of misuses [of cryptocurrency], including human rights violations, trafficking of people, money laundering, and many other things.” Also, Baqir outlined that the potential risks of cryptos “far outweigh the benefits.”
Pakistan may turn into a leading South Asia country if the committees decide to legalize cryptos in terms of crypto adoption. Meanwhile, countries like Nigeria and Panama are already considering regulating cryptos via local legislation.
Crypto markets react
The news comes in sync with a global crypto market rebound, pushing the total crypto market cap to $1.75 trillion, after a bearish week that slumped crypto prices. Bitcoin, for example, bounced from its weekly low of $37,585.62 and now it’s trading above $39,000.
Ethereum, as well as the rest of the crypto market, followed suit. However, the daily gains are marginal, as the sector is still in a form of a bearish pushdown. Many of the crypto projects witnessed double-digit price slumps, despite the recent recovery.