Pakistan Government Forms Three Distinct Committees to Decide Fate of Crypto in the Country

The committees will review all aspects of the cryptocurrency market and come up with recommendations on the country’s crypto policy.

By Shomik Sen Bhattacharjee | Updated: 4 May 2022 17:34 IST

Pakistan Government Forms Three Distinct Committees to Decide Fate of Crypto in the Country

Photo Credit: Unsplash/ Abuzar Xheikh

Pakistan has established committees to decide whether crypto should be legalised or prohibited

Highlights

The committees will submit suggestions to the Finance Secretary
Pakistani authorities aim to find a balance before a ban
The State Bank of Pakistan has been largely anti-crypto so far

The Pakistani government has set up three sub-committees to deliberate the future of cryptocurrency in the nation. The committees will assess all elements of the cryptocurrency industry and offer recommendations on Pakistan's crypto legislation. The sub-committees were constituted during a meeting headed by Finance Secretary Hamed Yaqoob Sheikh to decide whether the wider cryptocurrency market should be legalised or banned. As per a local newspaper, Pakistan's federal government is leaning towards either a blanket ban on crypto transactions, or a strong form of control on the emerging market.

According to a report by The Express Tribune, a reputed Pakistan-based daily English-language newspaper, the formed panels will develop their suggestions based on everything about the cryptocurrency industry, including its legal status and a prohibition on it. The recommendations will be delivered to a committee chaired by the finance secretary.

The foundation of the first panel was laid under the chairmanship of Pakistan's legal secretary. Among other members, the State Bank of Pakistan (SBP), Federal Investigation Agency (FIA), and Pakistan Telecommunication Authority (PTA) will be present.

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The committee will consider whether cryptocurrencies may be banned under current regulations. It will also suggest a method for banning crypto while preserving a delicate balance between protection and technological progress.

The remaining two sub-committees have been presided over by SBP Deputy Governor Saima Kamal. The committees will include representatives of the Ministry of Information Technology, Securities and Exchange Commission of Pakistan, the PTA, and others.

The report will also convey their thoughts on imposing an immediate ban on cryptocurrency and the consequences it may have in the future. They'll also debate whether the nation would fall behind other nations should cryptocurrency get banned in the country.

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Following that, the sub-committees will develop their proposals and submit them to a committee headed by the finance secretary, after which policy options on cryptocurrencies will be created.

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