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The Securities and Exchange Commission of Pakistan has published a paper discussing cryptocurrency regulation in the country. Meanwhile, the central bank has reportedly confirmed that there is no cryptocurrency ban.<\/strong><\/p>\n The Securities and Exchange Commission of Pakistan (SECP) has published a position paper on the regulation of cryptocurrency trading platforms.<\/p>\n Besides discussing definitions and concepts of cryptocurrencies, the paper outlines different regulatory approaches adopted globally, including the recommendations<\/a> by the Financial Action Task Force (FATF), and regulations in Malaysia, Hong Kong, and the U.S. It also details how cryptocurrency could be recognized in Pakistan and regulatory proposals. \u201cThis consultation paper focuses exclusively on non-government or non-central bank issued crypto assets and not on central bank digital currencies [CBDCs],\u201d the paper notes.<\/p>\n The paper discusses two approaches available for regulating cryptocurrencies. Firstly, cryptocurrency can be regulated and restricted according to existing regulations \u201cand may in some instances even entail outright banning,\u201d the SECP wrote.<\/p>\n Secondly, cryptocurrency can be regulated \u201cbased on the conjecture of \u2018let-things-happen\u2019 approach, described by the Commodity Futures Trading Commission (CFTC) as the \u2018do-not-harm\u2019 approach \u2026 where the financial sector is considered as dynamic and the associated need to innovate is strongly emphasized.\u201d<\/p>\n The SECP says its position paper \u201cis mainly prepared based on [the] second approach,\u201d adding that it \u201cintends to hold multiple discussion session and welcomes any input\/comments.\u201d The position paper can be found here<\/a>.<\/p>\n Meanwhile, the State Bank of Pakistan has reportedly clarified that cryptocurrency is not banned. The central bank\u2019s lawyer recently told<\/a> the Sindh High Court that the bank issued a warning about dealing in cryptocurrencies, including bitcoin, but did not ban them.<\/p>\n<\/p>\n Pakistan\u2019s central bank issued a circular<\/a> dated April 6, 2018, advising financial institutions, including banks and payment service providers, \u201cto refrain from processing, using, trading, holding, transferring value, promoting and investing in virtual currencies\/tokens.\u201d It further states that financial institutions \u201cwill not facilitate their customers\/account holders to transact in VCs\/ICO tokens. Any transaction in this regard shall immediately be reported to [the] Financial Monitoring Unit (FMU) as a suspicious transaction.\u201d<\/p>\n This circular is similar to the one issued by India\u2019s central bank, the Reserve Bank of India (RBI), which imposed a banking ban<\/a> on the crypto industry. The RBI circular was quashed<\/a> by India\u2019s supreme court in March and the banking ban was lifted in India.<\/p>\n Waqar Zaka, a television presenter who has been actively petitioning to lift the ban imposed by Pakistan\u2019s central bank, said that the country\u2019s crypto ban has been misreported by the media and the Federal Investigation Agency (FIA) has falsely been arresting people for possessing bitcoin. Emphasizing that the arrests must stop, Zaka explained that \u201cParliament has not passed any law to ban\u201d bitcoin or other cryptocurrencies in Pakistan.<\/p>\n What do you think about Pakistan regulating cryptocurrency? Let us know in the comments section below.<\/strong><\/em><\/p>\n The post Pakistan\u2019s SEC Discusses Cryptocurrency Regulation, Central Bank Confirms No Crypto Ban<\/a> appeared first on Bitcoin News<\/a>.<\/p>\nPakistan\u2019s Crypto Regulation in the Works<\/h2>\n
No Crypto Ban<\/h2>\n