By Staff Reporter
ISLAMABAD: The government-backed crypto body will meet next week to draft regulations for digital assets, a push to integrate the technology that clashes with an active ban on cryptocurrency transactions and central bank skepticism.
Finance Minister Muhammad Aurangzeb will chair the June 2 meeting of the Pakistan Crypto Council (PCC), launched in March to “regulate and integrate blockchain technology and digital assets,” the finance ministry said on Friday.
The ministry said “the upcoming meeting underscores the government’s commitment to shaping a future-ready financial infrastructure while ensuring stability and compliance in the emerging digital economy”.
“Key items on the agenda include the development of a robust regulatory framework to govern digital and virtual assets in Pakistan, in alignment with global standards and technological advancements,” the ministry said. “
The June 2 meeting will specifically lay groundwork for the “Pakistan Virtual Assets Regulatory Authority” (PVARA), an autonomous body proposed to oversee crypto and digital finance.
“A focal point of discussion will be the groundwork for the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) — a proposed autonomous body to oversee the digital finance and crypto ecosystem in the country.”
The Finance Ministry said the meeting is critical to building a “secure, transparent, and innovation-friendly regulatory environment,” promoting “responsible adoption of blockchain technology” while “protecting investors and enhancing financial inclusion.”
Key attendees include PCC Chief Executive Officer Bilal Bin Saqib, whose council was launched to “regulate and integrate blockchain technology” into Pakistan’s financial system.
The push marks a sharp reversal from Pakistan’s 2018 ban on cryptocurrency, imposed over fears of financial instability and illicit flows. Finance Secretary Imdadullah Bosal confirmed on Thursday that the ban remains enforced, with regulators still debating a legal pathway. The State Bank of Pakistan (SBP) reiterated Friday it “does not recognize crypto assets due to the absence of any legal and regulatory framework for the VAs”.
The SBP, however, stressed its 2018 restrictions targeted risks from regulatory voids, not an outright illegality of crypto.
“This was done to protect its regulated entities and their customers from the risks emanating due to the absence of legal and regulatory framework for VAs in the country,” the central bank said.
“The SBP and Finance Division are currently engaged with the Pakistan Crypto Council established by the Federal Government for, among others, developing an appropriate legal and regulatory framework for VAs in Pakistan. We understand that the legal and regulatory framework would provide the requisite clarity and legal coverage about the VAs ensuring consumer and investor protection.”
Last month, Pakistan rolled out its first-ever policy framework for digital money, crafted by a special government group under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) authority. The framework aligns with the Financial Action Task Force (FATF) guidelines.
Pakistan is no stranger to the crypto boom. The country ranks among the top 10 globally for cryptocurrency adoption, according to the 2023 Chainalysis Global Crypto Adoption Index, with 40 million users and an annual trading volume surpassing $300 billion.
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