A report from last Thursday informed that the Pakistan authorities are now considering creating a regulatory framework to govern the trading of digital currencies in the country.
The development has been initiated by the country’s Securities and Exchange Commission (SECP), marking the first time a regulatory body makes a move to govern cryptocurrency in the country.
Pakistan SEC formulates a framework for crypto
Today, the development will push through as the country’s authorities are preparing to enter a new era of digital finance. SECP recognized the growing market valuation and landscape of cryptocurrencies, adding that digital currencies can bring modernizations to the financial sector. But the potentials can only be harnessed with the frameworks set in place to regulate the market while ensuring that the contributing investors are sheltered from any connected risk.
The regulator seeks proposals to formulate a regulatory framework for the cryptocurrency market. The SECP also planned to “engage with market participants and welcome industry feedback determining how to regulate the digital assets domain.” The regulator from Pakistan will also examine regulatory frameworks that are already adopted in other countries for the regulation of crypto assets.
Crypto regulation
The need for the regulatory response to the crypto market is motivated by the growing interest, participation, and investments in digital currency. Also, the cryptos aren’t included in the current regulatory framework, besides that, it can impact the country’s financial industry, the SCEP added.
“Crypto Assets are the start of a new era of Digital Finance and demand innovative regulatory measures and approaches by regulators across the world. This could only be possible by the initiation of a new era that re-invents regulatory regime/measures as they are known to the regulators globally today.”
No Comment