Pakistan Considers Establishing National Crypto Council for…

Pakistan’s Finance Ministry is considering the creation of a “National Crypto Council” to explore the legalization of cryptocurrencies, following a meeting with a foreign delegation of crypto experts. The council aims to develop policies for a secure and sustainable crypto ecosystem. This initiative comes in response to the involvement of over 20 million Pakistani residents in cryptocurrency, despite challenges like high transaction fees. Previous opposition from authorities is being reconsidered under the current administration’s open-minded approach to regulation.

The Finance Ministry of Pakistan is contemplating the establishment of a “National Crypto Council” aimed at evaluating the potential legalization of cryptocurrencies within the nation, as reported by the local publication Dawn. This shift follows a meeting held by Finance Minister Muhammad Aurangzeb with a foreign delegation that included advisors to former US President Donald Trump.

The proposed council would consist of key government representatives, regulatory authorities, and industry specialists. Its primary responsibilities will include overseeing policy formulation, addressing regulatory hurdles, and ensuring the development of a sustainable and secure cryptocurrency ecosystem in Pakistan.

Pakistan currently has over 20 million residents engaged in cryptocurrency trading, facing notable obstacles including exorbitant transaction fees. Minister Aurangzeb has tasked stakeholders with establishing a framework to promote economic viability and ensure regulatory compliance, while effectively safeguarding against financial crimes and illicit activities.

Pakistan’s movement towards cryptocurrency legalization aligns with global trends, as countries like the United States, Europe, and the United Arab Emirates have taken steps to regulate the industry for better consumer protection and innovation. In earlier discussions, both the Finance Ministry and the State Bank of Pakistan opposed the legalization of cryptocurrencies, with previous Minister Aisha Ghaus Pasha asserting that they would never be legalized.

Despite the past position, Minister Aurangzeb has encouraged authorities to approach cryptocurrency regulation with an open mindset. The State Bank of Pakistan announced a proposed framework for central bank digital currency (CBDC) and regulating the buying, selling, and trading of crypto in November 2024.

The foreign delegation that met with Minister Aurangzeb included Gentry Beach Jr., a business associate of President Trump, tech entrepreneur Nikita Goldsmith, blockchain consultant Alex Malkov, and Jerad Finck, CEO of Cosmic Wire. This meeting was not publicly disclosed by the US Embassy.

The Trump administration has shifted the discourse surrounding cryptocurrencies in the United States, restructuring the US Securities and Exchange Commission’s crypto branch, appointing David Sacks as a crypto czar, and forming a committee to explore a national digital asset stockpile.

The Finance Ministry of Pakistan is taking significant steps toward the evaluation and potential legalization of cryptocurrency through the formation of a National Crypto Council. By involving key government and industry representatives, the council aims to create a regulatory framework that encourages innovation while safeguarding against financial crimes. This move reflects a broader global trend towards cryptocurrency regulation, signaling a transformative shift in Pakistan’s approach to digital currencies.

Original Source: cointelegraph.com