Pakistan Moves To Legalise Cryptocurrency To Attract Foreign Investment. Will India Follow Suit?

While Pakistan reportedly moving forward with crypto legalisation, India maintains an ambiguous stance on digital assets.

Pakistan’s initiative could position it as a key player in the digital finance sector

Source : David Peterson/Pexels

Pakistan is making strides toward embracing digital assets by setting the stage for cryptocurrency legalisation. This strategic move is designed to regulate the crypto market while boosting investor confidence and fostering business growth. According to Bloomberg, the government aims to establish a secure and transparent framework for digital currency transactions, aligning itself with the growing global trend of crypto adoption.

With more nations establishing cryptocurrency regulations, Pakistan’s initiative could position it as a key player in the digital finance sector. The move is expected to open new avenues for blockchain innovation and drive financial inclusion within the country.

Pakistan Crypto Council to Oversee Digital Asset Integration

To facilitate the transition, the Pakistan government has reportedly launched the Pakistan Crypto Council, a newly formed regulatory body dedicated to integrating blockchain technology into the country’s financial system. Chaired by Finance Minister Muhammad Aurangzeb, the council will focus on policy-making, regulatory clarity, and industry engagement to create a structured approach to crypto adoption.

Aurangzeb emphasised the government’s commitment to fostering a secure and progressive cryptocurrency ecosystem. "The initiative reflects Pakistan’s proactive stance on positioning itself as a global player in digital finance while ensuring investor protection and financial stability," he stated.

Based in Islamabad, the council is expected to play a crucial role in balancing innovation with regulation. By working closely with policymakers, regulatory authorities, and industry leaders, it aims to provide businesses and investors with a compliant and well-defined framework for engaging with digital assets.

India’s Stance on Cryptocurrency Remains Unclear

While Pakistan reportedly moving forward with crypto legalisation, India maintains an ambiguous stance on digital assets. The country neither outright bans nor fully permits cryptocurrency investments. In 2020, the Supreme Court of India lifted the Reserve Bank of India’s ban on cryptocurrency, making investments in the sector legitimate. However, questions remain regarding taxation and regulatory oversight.

Recent reports indicate that India is reviewing its approach to cryptocurrency regulation. A senior government official told Reuters in February that shifting global attitudes, including policies from US leaders, may influence India’s next steps. This reassessment could delay the release of a long-anticipated discussion paper on cryptocurrency, which was originally expected in September 2024.

As the global financial landscape evolves, Pakistan’s decision to embrace crypto regulation could set an example for neighbouring nations looking to navigate the complex world of digital assets.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.

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