• Sun. Aug 14th, 2022

Pakistani authorities face increasing pressure to regulate cryptocurrencies as adoption skyrockets

It’s no secret that much of the global adoption of cryptocurrency is driven by P2P transactions on exchange platforms in developing countries, even as governments in these emerging markets continue. to remain openly skeptical about the new asset class.

Pakistan is no stranger to this scenario, as the country’s government has yet to develop a set of rules or guidelines for investing and using cryptocurrency. In 2018, the country’s State Bank issued a Warning against the use of cryptocurrencies, while prohibiting banks from engaging in digital assets in any form.

In fact, it wasn’t until 2020 that one of the country’s courts issued an order prohibiting authorities from arresting Bitcoin holders unless they were engaging in illegal activities, such as money laundering. ‘money. Even then, the country’s regulatory landscape remained ambiguous at best. However, some crypto enthusiasts in the country are working to change that, defying financial authorities over the lack of regulatory clarity.

Waqar Zaka, a former TV host and prominent cryptocurrency promoter filed a Case asking the courts to investigate Pakistan’s Securities and Exchange Commission to enable it to launch Pakistan’s first local and regulated cryptocurrency exchange, TenUp. Zaka has long educated his fellow citizens on the merits of cryptocurrency trading and had previously claimed that Binance was a viable option for keen traders.

However, upon realizing that Binance was an unaccredited, unregulated exchange with no permanent office, the crypto lawyer approached the court for an order against unregulated international websites, such as Binance. The court then asked the Federal Investigation Agency (FIA) to take action against all unregulated trade in order to prevent fraud.

The case over TenUp’s approval is due to be heard by the Sindh High Court (SHC) on October 19, even as courts are already probing federal authorities over the lack of crypto clarity in the country.

Earlier this month, CSS had gate the Ministry of Finance, State Bank of Pakistan, Ministry of Finance and SECP on why cryptocurrencies were not allowed in the country, while also asking them to help the court on the how they can be regulated. Moreover, the court even noted that crypto transactions are now a viable mode of business transactions around the world, and Pakistan should also take steps to protect investors from fraud through proper regulation.

Likewise, the High Court of Lahore, on October 9, had directed the federal government to inform it if the State Bank of Pakistan SBP has enacted any law or rules to regulate cryptocurrency in the country.

The country’s cryptocurrency market has seen a skyrocketing 711% increase in the past year, according to a recent report report by Chainalysis, which placed it third in terms of cryptocurrency adoption.

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