Federation of Pakistani Chambers of Commerce and Industries has hinted that Pakistanis could be in ownership of $ 20 billion worth of cryptocurrency between 2020 and 2021. This was stated in a report titled ” Prospects Of Cryptocurrencies: A Context of Pakistan Policy Advisory Board, Policy Brief” which can be read here.
The report also states that “Pakistan is now ranked third in the global cryptocurrency adoption index in 2021.” The data shows that Pakistan’s crypto assets have grown by a staggering 711 percent over last year.
The cryptocurrency phenomenon has gained popularity among audiences all over the world. Small countries like El Salvador have made it legal tender, but big economies like China and the US are trying to restrict it with new rules.
The State Bank of Pashistan has repeatedly banned the general public from participating in cryptocurrency transactions, as well as restricting cryptocurrency trading for organizations under its jurisdiction. In addition, the Financial Action Task Force on Money Laundering (FATF) has called on Pakistani authorities to better regulate the crypto industry.
The report shows that Pakistanis / dual citizens can hold billions of dollars in crypto assets.
The report highlights the urgent need to develop a regulatory framework for cryptocurrencies and a national strategy to address this issue. One of the proposed measures was the introduction of a one-time declaration of Cryptos, as well as some taxes on capital gains. In addition, cryptocurrencies generate huge speculative profits that cannot be granted legal tender status, but which must be formalized as an asset class.
Following are the suggestions of the report:
Phase -1
- Launch Asset Declaration Scheme
Phase -2
- Broaden the Legislative Framework to incorporate Cryptocurrencies
- SECP to setup Crypto Exchange Platform under its own monitoring
- Launch Crypto-based Exchange Traded Funds
Phase -3
- Monitoring and Surveillance of Crypto transactions
- Capital Control Restrictions of Crypto Transactions
- Avoid recognizing Crypto as a Legal Tender
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