Pakistan’s government puts the number of active digital asset holders in the country at more than 20 million, struggling with issues such as high fees and the absence of regulation. Pakistan is taking steps to legalize cryptocurrencies– a dramatic policy change after years of opposition– in an apparent attempt to placate the Trump administration in the United States, as it indicates it is pro-digital assets.
On Tuesday (Feb 25), Pakistan’s finance ministry said it is weighing up the establishment of a National Crypto Council to oversee and manage the adoption of digital currencies according to international trends. Finance Minister Muhammad Aurangzeb received a foreign delegation, among whom were President Donald Trump’s digital assets advisers, Dawn said in a statement.
Pakistan’s attitude towards digital currencies has taken a drastic turn. The government and the State Bank of Pakistan (SBP) were opposed to legalising cryptocurrencies until last year. Even a former finance minister went on record to say that cryptocurrencies would never be allowed in the country.
But Finance Minister Aurangzeb gave a hint towards a new approach on Monday (February 23), openly suggesting an “open-minded” discussion before the official talks with the foreign delegation. The government is keen on investigating digital assets and incorporating blockchain technology to advance the financial industry,” Aurangzeb added.
Pakistan’s government puts the number of active users of digital assets in the country at more than 20 million, grappling with issues such as high transaction costs and no regulation. The National Crypto Council would be an advisory body that includes major government officials, regulators, and industry experts.
Its functions would involve monitoring policy formulation, resolving regulatory issues, and promoting a safe and sustainable digital asset environment in Pakistan. The finance ministry added the council would also work with like-minded countries to create standardized models for global digital economic engagement.
Aurangzeb emphasized the need to align Pakistan’s digital asset system with global best practices and Financial Action Task Force (FATF) standards. The finance minister has instructed stakeholders to come up with an overarching framework that emphasizes security, transparency, compliance, and economic viability, as well as protection against financial crimes and illicit activities.
