In a recent development, Pakistan Telecommunications Authority (PTA) has decided against banning cryptocurrencies in Pakistan. Previously, the State Bank of Pakistan (SBP), Ministry of Information and Technology and the Securities Exchange Commission of Pakistan (SECP) proposed complete ban on trading cryptocurrencies in the country. However, PTA has objected the proposal by opposing it.
PTA believes that imposing a ban on cryptocurrencies in the not way forward. They believe that any such action will be a step taken backward instead of moving forward. Additionally, a ban on digital currencies in Pakistan will ultimately halt plenty of other associated technologies and progression of IT-related startups.
A great amount of digital transactions are already taking place and blocking them won’t be a sensible notion. In a statement, PTA said:
“Though well-known websites and exchanges can be geo-blocked; users can bypass the digital barricades through the use of VPNs and proxy servers”
On the other hand, the Ministry of Law also demanded a valid reasoning to prohibit the use of cryptocurrencies in the country. The ministry also offered its services by assisting to help in shaping a legal framework for either regulating or banning the trade of digital currencies.
With every passing day, the subject of cryptocurrency in Pakistan is heating up. Many influencers are trying their best by putting all their efforts to make it legal and approachable. Furthermore, the government has also decided to seek at least 3 months from the Sindh High Court (SHC) on cryptocurrencies. The time period shall help the government in preparing and submitting joint recommendations of the finance ministry and the law ministry.
Pakistanis made over $604 million in cryptocurrencies in 2021
Last year, Pakistanis relished a profit of close of Rs100 billion ($604 million) by dealing in cryptocurrencies. As per the analytics form Chainalysis, Pakistan was placed third in the list of Crypto Adoption Index. Moreover, the people of Pakistan had over $20 billion in crypto assets between July 2020 to June 2021.
This raised eyebrows among the policymakers as they believed that this could result in dollar outflows and dwindling forex reserves. Resultantly, SBP legislators together with other regulators proposed that cryptocurrencies should be banned in Pakistan. However, the trend of trading still continues as Pakistanis are adamant on adopting Web 3.0 as it is considered to bring revolution in the blockchain technology.