Report Reveals Pakistanis own $20 Billion in Crypto
Nasir Hayat Magoon, the President of the FPCCI (Federation of Pakistan Chambers of Commerce and Industry) has said that the total value of cryptocurrencies held by Pakistanis is around $20 billion. Magoon said during a press conference that they had used the FPCCI’s research report for deriving this value. He urged the government to introduce policies for monitoring crypto transactions. He went on to say that India had already come up with rules regarding cryptocurrency and Pakistan needs to follow the same route right away. This is certainly not the first occasion that there has been a discussion about introducing rules for cryptocurrencies in Pakistan.
On October 20th, 2021, The High Court of Sindh, which is the highest judicial organization in the Sindh province of Pakistan, had called upon the federal government to come up with policies for regulating the crypto market. An order had been issued by the SHC to government organizations, which includes the Ministry of Information Technology and Law for collaborating with regulatory bodies in order to develop rules regarding cryptocurrencies. These include the central bank of Pakistan and the Securities and Exchange Commission of Pakistan (SECP) and a deadline of three months was given for this purpose.
As far as the SECP is concerned, it has been working on developing a regulatory framework for cryptocurrencies since 2020. Even though there isn’t any clarity as yet, it is a fact that there is an increase in crypto trading activities in the country. Reza Baqir, the State Bank of Pakistan’s governor, said that the central bank of the country would consider the possibility of developing a central bank digital currency (CBDC). Analytics platform Chainalysis, which provides different services pertaining to data, research, and software, has also issued a report about the adoption of cryptocurrencies in Pakistan.
In November, Chainalysis had published the research on Pakistan in which it disclosed that crypto adoption in the country had increased significantly in the last year. The report also highlighted that the crypto boom was primarily because of people who were interested in digital currencies. In the past year, there has been a growth of a whopping 711% in the crypto market in Pakistan, which is also one of the leading markets in the Middle East and Europe. The president of the FPCCI noted that India had a more advanced crypto regulatory framework than Pakistan, even though its crypto market’s growth rate was a lot lower.
In the last year, there has been a 641% growth in the Indian crypto market. However, the country has taken the lead when it comes to attracting crypto investments. According to the Chainalysis report, there has been an increase in venture capital investments in India related to the crypto space. But, it is also a fact that the crypto market is suffering because of the looming crypto bill, which was scheduled for debate in the winter session of the Indian parliament. But, the market has gotten some reprieve, as it is now expected to be discussed in the budget session instead.