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The nation of Pakistan has issued a warning that it’s going to look into potentially banning crypto.
Will Pakistan End All Crypto Activity?
The news came by way of Pakistan Minister of State for Finance and Revenue Aisha Ghaus Pasha, who said in a recent Senate session that his country has no interest in legalizing crypto trading at any point. Right now, this is all widely speculative, and nothing is set in stone. In addition, the statements are coming from political officials, who change their minds as often as you might eat breakfast.
At the same time, if Pakistan were to move forward and ban all crypto trading and related activity, it would likely have atrocious effects on the country. One of the most devastating outcomes would be that Pakistan would easily fall behind when it comes to technological advancements.
Right now, blockchain is exploding like it never has before. There are also many countries and continents doing all they can to ensure crypto regulation is in place so that people can at least remain protected if they’re going to engage in crypto investing.
For example, the European Union (EU) has just passed a string of regulations known as MiCA designed to ensure all crypto trading is clear, safe, and straightforward in European nations. While the framework isn’t necessarily perfect and leaves a lot of stones unturned, it is at least a step in the right direction, and there will probably be changes and additions made to these regulations in the coming future.
In Pakistan, it’s likely that people are going to engage in crypto trading anyway, whether the government allows them to or not. The fact is that Pakistan is still considered a developing nation, and thus the introduction of crypto could arguably aid the nation from a financial perspective like it could all Middle Eastern regions.
If regulators are to get in the way of innovation like this, the country will suffer because people who are looking to trade either way will not be protected as they do so. Furthermore, the nation is likely to fall behind regions such as the EU, which have accepted that crypto is a staple of the future and are moving forward with rules that will allow easier integration and practices.
Who Supports This?
Pasha’s comments are currently receiving support from other regulatory bodies in the country including the State Bank of Pakistan (SBP) and its director Sohail Jawad. Pasha also stated that banning crypto was one of the requirements established by the Financial Action Task Force (FATF). Currently, the FATF has not officially acted upon this, suggesting – at least in Pasha’s eyes – that the agency hasn’t done its job.
Some countries – like China – have already taken measures to ensure all crypto activity is banned.
