- Pakistan establishes authority for Bitcoin regulation, impacts crypto market.
- Newly formed regulatory body focuses on digital assets management.
- Changes expected in financial and technological landscape, boosting crypto oversight.
Pakistan’s federal cabinet has approved the establishment of the Pakistan Virtual Assets Regulatory Authority to oversee Bitcoin and other cryptocurrencies effectively.
The new regulatory authority in Pakistan signifies a substantial shift toward formalizing cryptocurrency activities, impacting national economic strategies and aligning with international monetary frameworks.
The approval of the Pakistan Virtual Assets Regulatory Authority by the federal cabinet marks a significant development in digital assets regulation. Officials involved include the Securities and Exchange Commission of Pakistan Chairman and the State Bank of Pakistan Governor. This move aims to leverage Pakistan’s energy resources, allocating it to Bitcoin mining, and emphasizes a long-term digital asset strategy. With prominent figures like Changpeng Zhao advising the Pakistan Crypto Council, the country aligns itself for prominent leadership in the digital economy.
“The proposed authority will operate as an independent regulator dedicated to licensing, monitoring, and supervising virtual asset service providers (VASPs), while ensuring full alignment with Financial Action Task Force (FATF) guidelines and international best practices.” – Minister of State for Blockchain and Crypto, Pakistan
Immediate effects include the allocation of 2,000 megawatts of surplus electricity for Bitcoin mining operations, positioning Pakistan as a contender in the blockchain sphere. The government underscores compliance with institutions like the FATF and praises the initiative as a monumental step. This regulatory shift is anticipated to increase legitimacy and potentially invite substantial private and international investments into Pakistan’s digital economy.
Expectations include increased domestic and international market participation due to enhanced clarity and oversight. Historical data from other nations indicates that such regulatory frameworks often lead to positive economic impacts, with increased inflows reinforcing the crypto market’s credibility.
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