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Pakistan Securities Regulatory Commission discusses cryptocurrency regulation, and the Central Bank confirms that there is no crypto ban

The Securities and Exchange Commission of Pakistan (Securities and Exchange Commission of Pakistan) published a paper discussing Pakistan’s cryptocurrency regulation. At the same time, according to reports, the central bank has confirmed that there is no cryptocurrency ban.

Pakistan’s encryption regulations in engineering

The Securities and Exchange Commission of Pakistan (SECP) has issued a position paper on regulating cryptocurrency trading platforms.

In addition to discussing the definition and concepts of cryptocurrency, this article also outlines the different regulatory methods adopted globally, including the recommendations of the Financial Action Task Force (FATF) and the regulations of Malaysia, Hong Kong and the United States. Pakistan and regulatory recommendations. “This consultation document only focuses on crypto assets issued by non-government or non-central banks, not central bank digital currencies [CBDCs],” paper notes.

This article discusses two methods that can be used to regulate cryptocurrencies. First, the SECP wrote that cryptocurrencies can be supervised and restricted in accordance with existing regulations, “in some cases it may even be completely prohibited.”

Secondly, it is possible to “regulate cryptocurrencies based on the conjecture of the’Internet of Things’ method, which is described by the Commodity Futures Trading Commission (CFTC) as a’harmless’ method…in the case of the financial sector being considered dynamic. And strongly emphasized Related demands for innovation.”

SECP stated that its position paper “is mainly based on [the] The second method” and added, “I intend to hold multiple seminars. Any comments/comments are welcome. The position paper can be found here.

No encryption ban

At the same time, according to reports, the National Bank of Pakistan clarified that it does not prohibit the use of cryptocurrency. The central bank’s lawyers recently told the Sindh High Court that the bank issued a warning about trading cryptocurrencies, including Bitcoin, but did not prohibit them.

The Central Bank of Pakistan issued a notice on April 6, 2018, recommending that financial institutions including banks and payment service providers “do not process, use, trade, hold, transfer value, promote and invest in virtual currencies/ It further stated that financial institutions “will not facilitate VC/ICO token transactions for their customers/account holders. Any transactions in this regard should be reported to [the] The Financial Monitoring Unit (FMU) is suspicious transactions. “

The circular is similar to the circular issued by the Reserve Bank of India (RBI), the central bank of India, which imposed a banking ban on the crypto industry. The Supreme Court of India cancelled the notice from the Reserve Bank of India in March and lifted the bank ban in India.

TV presenter Waqar Zaka has been actively calling for the lifting of the ban on the Central Bank of Pakistan. He said that the country’s encryption ban was misreported by the media, and the FIA ​​had mistakenly arrested people who owned Bitcoin. Zaka emphasized the need to stop arrests and explained that “Parliament has not passed any law to prohibit” Bitcoin or other cryptocurrencies in Pakistan.

What do you think of Pakistan’s regulation of cryptocurrency? Let us know in the comments section below.

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