Finance Secretary Imdadullah Bosal on Thursday said that the ban on cryptocurrency was still in place across Pakistan, stressing the need for its regulation. The State Bank of Pakistan (SBP) does not recognise crypto assets, which are digital currencies in which transactions are verified and recorded by a decentralised system. The SBP issued a formal notice in 2022 advising the general public to be cautious of and refrain from trading cryptocurrencies. During today\u2019s meeting of the National Assembly Standing Committee on Finance, PPP MNA Sharmila Farooqi introduced a bill on digital currency regulations, prompting different remarks from committee members. \u201cThere are no regulations for cryptocurrency,\u201d Farooqui said, adding that since Pakistan was moving towards digital currency, cryptocurrency should be decentralised. She highlighted Pakistan\u2019s exit from the \u2018grey list\u2019 of the Financial Action Task Force (FATF) \u2014 a global money laundering and terrorism financing watchdog \u2014 and said, \u201cHow will Pakistan protect cryptocurrency from money laundering?\u201d In 2018, Pakistan was placed on the so-called \u2019grey list\u2019 for allegedly failing to take adequate measures to curb terror financing and money laundering. The country was removed from the list in 2022. While highlighting the SBP\u2019s ban on crypto investment, Bosal said, \u201cPreliminary work is underway in the Crypto Council but there is a need for proper regulations for cryptocurrency.\u201d The Pakistan Crypto Council (PCC) was officially launched in March this year to \u201cregulate and integrate blockchain technology and digital assets\u201d into the country\u2019s financial landscape. According to SBP official Sohail Jawad, there was a legal framework required for cryptocurrency. \u201cThe National Working Group on Digital Currency has been established, while suggestions have been given to the Crypto Council,\u201d he said. \u201cOnly El Salvador has legalised cryptocurrency in the world, and now they are reversing this decision,\u201d he added. Meanwhile, committee member Osama Ahmed said, \u201cThere is no ban on holding cryptocurrency in Pakistan.\u201d He said that cryptocurrency was being used to order vehicles from Japan, adding, \u201cHas the State Bank taken any action on this?\u201d He asked, \u201cIs the government supervising the mining of cryptocurrency?\u201d MNA Mirza Ikhtiar Baig noted the youth were investing in cryptocurrency. \u201cThe value of cryptocurrency is increasing due to government measures, so the government should clearly state whether cryptocurrency is legal or not,\u201d he stressed. The finance secretary said that while the Crypto Council was established through the executive approval of the prime minister, it had not yet received legal approval. \u201cThe Council must address the concerns raised in the meeting today,\u201d he said. Earlier today, PCC Chief Executive Officer Bilal Bin Saqib unveiled the country\u2019s first government-led Strategic Bitcoin Reserve. In his keynote speech, Saqib announced the establishment of a national bitcoin wallet, \u201cholding digital assets already in state custody \u2014 not for sale or speculation, but as a sovereign reserve signalling long-term belief in decentralised finance\u201d. He also revealed that the government had allocated 2,000 megawatts of surplus electricity in the first phase for bitcoin mining and AI data centres, opening doors to sovereign miners, tech firms, and clean energy partners around the world. Speaking on this development, Baig said that the government had set the electricity rate for crypto mining at seven to eight cents while Pakistan\u2019s industries were demanding nine cents per unit. \u201cWhy doesn\u2019t the government provide electricity to industries at nine cents?\u201d he remarked, saying, \u201cOur exports can increase if industries are provided with electricity at this rate. The government should provide electricity to residential consumers at this rate.\u201d Farooqui added, \u201cHow was the decision to allocate 2,000 megawatts of electricity [for crypto mining] made?\u201d She also asked whether the government conducted a detailed review of this decision, saying, \u201cPakistan itself is suffering from load shedding.\u201d Cryptocurrencies are gaining momentum globally as the number of use cases is increasing and many countries are now making them legal. However, it has had a mixed reception by regulators globally. In some countries, like El Salvador, it has legal tender status, while in others, including Pakistan, India and China, it is not accepted as payment for goods and services, nor can one own it legally, though it is not officially banned either.<\/p>\n","protected":false},"excerpt":{"rendered":"
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