Pakistan Government has formed committees which will help them decide the future of the cryptocurrency business.
These three sub-committees that have been set up will help the government of Pakistan to decide whether the digital asset should be banned or not.
The committees are responsible to assess the various aspects of the industry to make a sound decision about the legislation of the cryptocurrency industry in Pakistan.
These panels will offer recommendations and then determine the legal status of the digital asset.
The sub-committees were formed during a meeting presided by Finance Secretary Hamed Yaqoob Sheikh which was primarily conducted to ascertain the legal status of cryptocurrency in Pakistan.
All the recommendations shall be finally sent to the committee which is being headed by the finance secretary. Supposedly, Pakistan might be looking at a blanket ban on crypto transactions or strong legal control over the industry.
Could Ban Crypto While Striking A Balance Between Safeguard And Advancement Of Technology
The first subcommittee was set up under the chairmanship of the Pakistani Law Secretary. The members of the three sub-committees include the State Bank of Pakistan (SBP), the Federal Investigation Agency (FIA), and the Pakistan Telecommunication Authority (PTA).
The committee will be looking into the method of banning cryptocurrency if that’s necessary under the present laws.
After evaluating that decision, the committee might suggest the most appropriate way of going about the same making sure that they maintain a balance between protection and technological growth.
Two other sub-committees were formed under the chairmanship of SBP Deputy Governor Saima Kamal. Members of these sub-committees include representatives of the Ministry of Information Technology, the Securities and Exchange Commission of Pakistan, and the PTA.
These committees shall actively debate if banning cryptocurrency would curtail the technological progress of the country.
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What Is Pakistan’s Current Stance On Crypto
The first committee was formed to decide if the digital asset needs a ban at all as approved legal tenders or virtual assets keeping in mind the current law.
The second committee will be passing on recommendations based on whether to ban or not and the effects it might have on the country’s technological advancement.
There continues to remain uncertainty as the State Bank Of Pakistan maintained an anti-crypto stance for the longest time.
The reasons stated were misuse of the technology, which included human rights violations, human trafficking, and money laundering among other illegal activities.
Pakistan remains unsure as the risks involved in adopting the virtual digital asset are far more than the benefits the technology has to offer.
At the beginning of this year, the Federal Investigation Agency (FIA) had asked the Pakistan Telecommunication Authority to ban more than 1,600 crypto websites.
On the other hand, Pakistan Telecommunications Authority has opposed the banning of cryptocurrency. PTA stated that the ban could adversely affect other connected technologies along with hampering IT start-ups.
Pakistan still hasn’t concluded with ongoing debates about a ban or not, committees have been formed keeping in mind that there is a fair discussion regarding the legal status of the digital asset. It is a matter of time till the Pakistan government finally arrives at a decision.
Related Readings | India To Be Considerate With Crypto Regulations; Shall Not Impede Innovation
Featured image from UnSplash, chart from TradingView.com
