In the absence of any regulations, the people of Pakistan have invested a lot of money in digital assets. New research claims that Pakistanis hold about $ 20 billion worth of cryptocurrencies, allegedly more than their central bank has in foreign exchange reserves.
Government calls for regulation as study shows Pakistanis hold $ 20 billion in cryptocurrency
According to the Pakistan Frontier and other media outlets citing a new report from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the Pakistani nation owns more cryptocurrency than currency reserves. The study, produced by the association’s Policy Advisory Board (PAB), estimates that Pakistanis held cryptocurrencies worth $ 20 billion in the 2020-21 period.
The authors point out that the popularity of digital currencies like Bitcoin has increased rapidly in recent years. With a market growth of 711% in 12 months, Pakistan climbed to third place in this year’s Global Crypto Adoption index calculated by the blockchain forensics company Chainalysis. The country is just behind India and Vietnam.
However, the true total of crypto holdings can be much higher than the number mentioned in the PAB report. Many residents of the country buy coins through peer-to-peer deals and these investments go largely undetected, the Business Recorder notes in an article. Cryptocurrencies are still a gray area in Pakistan as the country’s current legislation does not cover digital assets.
During a press conference, FPCCI President Nasir Hayat Magoon urged Islamabad to put in place a government policy that would facilitate cryptocurrency transactions, noting that neighboring ones India has already taken steps to implement some rules. Magoon insisted that such regulations are needed to allow investors to trade their coins in the country rather than in places like Dubai.
The report recommends Pakistan adopt a legal framework in line with the guidelines of the Financial Action Task Force and the International Monetary Fund. The study was published after Pakistan’s Minister of State for Parliamentary Affairs Ali Muhammad Khan specified in October that the government is generally not opposed to cryptocurrency investments. Pakistan’s courts have also urged the executive and legislature to introduce crypto regulations.
Do you expect authorities in Pakistan to regulate the country’s crypto space soon? Let us know in the comment section below.
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Source: Crypto News Austria