The Pakistani government has formed three committees to decide whether to establish a legal framework for cryptocurrencies or ban it. The committee will review all aspects of cryptocurrency businesses and make recommendations on cryptocurrency policy in the country.
Committee to decide legal status of cryptocurrencies in Pakistan
The Express Tribune reported on Tuesday, citing documents it saw, that the Pakistani federal government has formed three subcommittees to decide the future of cryptocurrencies and related businesses in the country.
The subcommittees were formed at a meeting chaired by Finance Minister Hamid Yakub Sheikh to decide whether to legalize or ban cryptocurrency businesses. They will review all aspects of cryptocurrency business and make recommendations on cryptocurrency policy in the country. Their proposals will go to a committee headed by the finance minister.
The first subcommittee was established under the chairmanship of the Pakistani Legal Secretary. Members of the subcommittee include the State Bank of Pakistan (SBP), the Federal Bureau of Investigation (FIA) and the Pakistan Telecommunications Authority (PTA).
The committee will evaluate whether cryptocurrencies can be banned under existing laws. It will also recommend a method that could be used to ban crypto while maintaining a balance between welfare and technological advancement.
The other two subcommittees are chaired by SBP Deputy Governor Saima Kamal. Members of these subcommittees include representatives from the Ministry of Information Technology, the Pakistan Securities and Exchange Commission and the PTA.
Their recommendations will be based on an immediate ban on cryptocurrencies and their future implications. They will also discuss whether Pakistan will fall behind in the race for technological advancement if the country bans cryptocurrencies.
The State Bank of Pakistan has long taken an anti-crypto stance. SBP President Reza Baqir said in March, “There is a lot of misuse around the world. [of cryptocurrency], including human rights violations, human trafficking, money laundering and many other things. He noted in February that the potential risks associated with cryptocurrencies “far outweigh the benefits.”
In January, the Federal Bureau of Investigation (FIA) reportedly asked the Pakistan Telecommunications Authority to ban more than 1,600 encrypted websites.
What do you think about how the Pakistani government is setting the country’s cryptocurrency policy? Let us know in the comments section below.
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