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Pakistan to Regulate Crypto Firms with New License Scheme

Pakistan to Regulate Crypto Firms with New License Scheme


Pakistan to Regulate Crypto Firms with New License Scheme

After a period of uncertainty and haranguing from international organizations, Pakistan has now declared that it will put in place complete regulations for the cryptocurrency industry.

As reported today by the Express Tribune citing Ministry of Finance sources, the federal government will now bring in regulations for Electronic Money Institutions (EMIs), based on recommendations from the G7’s Financial Action Task Force (FATF).

The sources were quoted:

“These regulations will help combating money laundering and terrorism financing while it will also help regulation of digital currency throughout the country.”

The new framework has as yet been kept from the public, although the nation’s central bank had published draft regulations last October, after an initial move to curb crypto by banning Bitcoin in mid-2018. The new rules would require EMIs to meet certain requirements to receive a nationally issued license. Firms that did not fall in line would face either suspension or get their licenses revoked.

Among some of the requirements were those related to capital, mandatory screening of executives, security measures to protect user funds and strict customer due diligence and KYC procedures, such as personal details, national registration, address and telephone contact.

Last month, Bitcoin News spoke exclusively to Pakistani celebrity Waqar Zaka, who claimed that his startup’s work with blockchain and philanthropy was instrumental in swaying the government’s attitude towards cryptocurrency, leading towards a full legalization.

Pakistan Finance Minister Asad Umar had issued recommendations to legalize crypto trading and business, lining p some 5,000 digital currency exchanges for registration. Cryptocurrencies will be classified as investments and net gains will be subject to taxation.

 

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