The Pakistani government has formed three committees to decide whether to create a legal framework for cryptocurrencies or to ban them. The committees will review all aspects of the cryptocurrency business and make recommendations on the country’s cryptopolitics.
Committees established to decide the legal status of cryptocurrency in Pakistan
The federal government of Pakistan has created three subcommittees to decide the future of cryptocurrency and related businesses in the country, the Express Tribune reported Tuesday, citing documents it has reviewed.
Subcommittees were formed at a meeting chaired by Finance Minister Hamed Yaqub Sheikh to decide whether to legalize or ban cryptocurrency businesses. They will consider all aspects of the cryptocurrency business and make recommendations on the country’s cryptopolitics. Their proposals will be sent to a committee headed by the Minister of Finance.
The first subcommittee was formed under the chairmanship of the Minister of Justice of Pakistan. This subcommittee included the State Bank of Pakistan (SBP), the Federal Investigation Agency (FIA) and the Pakistan Telecommunications Authority (PTA).
This committee will assess whether cryptocurrency can be banned under current law. It will also recommend a method that can be used to ban cryptocurrencies while maintaining a balance between welfare and technological progress.
The other two subcommittees were chaired by SBP Deputy Administrator Saima Kamal. These subcommittees include representatives from the Ministry of Information Technology, the Securities and Exchange Commission of Pakistan, and the PTA.
Their recommendations will be based on the introduction of an immediate ban on cryptocurrencies and its implications in the future. They will also discuss whether Pakistan will lag behind other countries in the race for technological progress if cryptocurrency is banned in the country.
The State Bank of Pakistan has long taken an anti-cryptocurrency stance. SBP governor Reza Baqir said in March that “there are many abuses [of cryptocurrency] around the world, including human rights abuses, human trafficking, money laundering and more.” In February, he noted that the potential risks associated with cryptocurrencies “far outweigh the benefits.
In January, the Federal Investigation Agency (FIA) reportedly asked the Pakistan Telecommunications Authority to ban more than 1,600 cryptocurrency sites.
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