The Pakistani government is working on a framework for regulating cryptocurrencies such as Bitcoin (BTC).
The Securities and Exchange Commission of Pakistan (SECP) has published a digital property regulation board. The document, released on November 6, outlines the key concepts of Pakistan’s growing digital financial market and examines current regulations developed in other global jurisdictions.
In the document, the SEC emphasizes that digital assets are “the beginning of a new era of the digital economy.” According to the regulator, a new era of the digital economy may “only be possible through the beginning of a new era that reinvents the regulatory framework [or] measures as they are known today to regulators around the world.”
The US Securities and Exchange Commission (SECP) noted that the advisory document focuses exclusively on private cryptocurrencies and does not include notes on the central bank digital currency or CBDC.
Distinguishing several types of digital assets, the SECP places particular emphasis on security tokens and instrument codes. According to the regulator, one of the most important advantages of security tokens is the ability to hash each asset, which provides benefits such as lowering barriers to investment for private investors. Other benefits include improved transparency and liquidity, improved clearing and settlement mechanisms, and more automation tools, as shown in the document.
The SECP will continue to engage with market participants and welcome industry comments on the development of a regulatory framework for cryptocurrencies.
Pakistan is in no rush to implement new foundations for digital money and cryptocurrencies. Last year, the country planned to introduce new rules for the use of digital currency for institutions dealing with electronic money. In April 2019, the Central Bank of Pakistan announced plans to issue a central bank digital currency by 2025.