- The Pakistan SEC has initiated a new legal regulation framework for digital assets.
- SECP issued a position paper on the regulation of digital currencies.
- Moreover, SECP distinguishes the numerous types of cryptocurrencies; and also it plans to hold many discussion sessions.
The Pakistan SEC is creating a new legal regulation framework for digital assets. The development was started by Pakistan’s Securities and Exchange Commission (SECP).
Pakistan’s Crypto Regulation
Recently, the SECP issued a position paper on the regulation of digital currencies. Prior to this, the State Bank of Pakistan stated that it does not recognize all cryptocurrencies in May 2017. Again, on April 6, 2018, SBP warned the public about the risk of digital currencies.
Now, Pakistan has created a legal crypto framework to accommodate cryptocurrency in the country. Its position paper highlights the major ideas for growing digital finance markets in Pakistan.
Moreover, the SECP particularly looks into the current regulatory frameworks that have been developed by other global entities. On top of this, the SECP mentions the cryptocurrencies as the “start of a new era of digital finance.“
The report adds,
This could only be possible by initiation of a new era that re-invents regulatory regime [or] measures as they are known to the regulators globally today.
Interestingly, the SECP distinguishes the numerous types of cryptocurrencies in the industry. They particularly highlighted security tokens and utility tokens but did not include remarks on a central bank digital currency, or CBDC. In addition, one of the key benefits to the former is the ability to fractionalize all assets.
As a result of this, it can significantly enable benefits such as lowering barriers for investment for day-to-day investors with transparency and improved liquidity. Further, the SECP intends to hold many discussion sessions. It also encourages the public to share in a posted discussion on their official website and social media accounts.
Moreover, with the growing number of countries that have already adopted cryptocurrency, regulations are a must to regulate digital assets and protect the interest of investors. With proper regulations, the anticipated cryptocurrencies and the crypto market will continue to flourish.