Pakistan is making a huge shift in its approach to cryptocurrency. After previously resisting digital assets, the country is now embracing them and setting up a new regulatory body to oversee the crypto industry.
From Resistance to Regulation
For a long time, Pakistan was firmly against crypto. But things changed dramatically after the US election in November 2024. The new administration’s pro-crypto stance seems to have influenced Pakistan’s decision to legalize cryptocurrencies in November 2024. This was a complete 180 from their previous position.
Now, they’re taking it a step further by creating a National Crypto Council. This council will be made up of government officials, regulators, and crypto experts. Its main job will be to create laws and guidelines for the growing crypto market in Pakistan. This follows a recent meeting between Pakistan’s Finance Minister and US officials, including the new US digital asset advisors.
The council’s goals include:
- Developing smart crypto policies.
- Solving regulatory problems.
- Making sure Pakistan’s crypto scene is safe, legal, and sustainable.
- Working with other countries to create international crypto standards.
A Complete Policy Reversal
It’s a big change. Just last year, Pakistan’s government and central bank were strongly against crypto. A former finance minister even said it would never be legalized. But the current Finance Minister, Muhammad Aurangzeb, has a different view. He’s pushing for a well-regulated crypto industry that follows international best practices and complies with FATF (Financial Action Task Force) guidelines to prevent financial crime. He also sees blockchain technology as a way to modernize Pakistan’s financial system.
Crypto in Asia: A Mixed Bag
Crypto regulations vary wildly across Asia. While Pakistan is opening up, India is still very strict, slapping high taxes on crypto transactions. This is interesting, considering India’s high rate of crypto adoption. Bhutan surprised everyone last year by revealing its substantial Bitcoin holdings. Singapore and Taiwan are very pro-crypto, while China continues to crack down on crypto trading. South Korea and Japan are taking a more cautious approach.
(Note: The Bitcoin price mentioned in the original article is omitted as it’s time-sensitive and not essential to the core information.)
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