SBP, Finance Ministry Working with Pakistan Crypto Council to Develop Virtual Assets Regulations

The State Bank of Pakistan (SBP) Friday said it is currently engaged with the Finance Division and Pakistan Crypto Council for developing an appropriate legal and regulatory framework for cryptocurrencies in Pakistan. “The SBP and Finance Division are currently engaged with the Pakistan Crypto Council established by the Federal Government for, among others, developing an appropriate legal and regulatory framework for Virtual Assets (VAs) in Pakistan,” the central bank said in its statement. “We understand that the legal and regulatory framework would provide the requisite clarity and legal coverage about the VAs ensuring consumer and investor protection,” the statement added. The central bank clarified that in 2018, it advised its regulated entities including Banks, Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Electronic Money Institutions (EMIs), Payment System Operators (PSOs), Payment Service Providers (PSPs), and Exchange Companies to avoid dealing in VAs due to the absence of any legal and regulatory framework for the VAs; not because it was declared illegal in the country. This was done to protect its regulated entities and their customers from the risks emanating due to the absence of legal and regulatory framework for VAs in the country, it added. A day earlier, the National Assembly Standing Committee on Finance questioned the government’s decision to form Pakistan Crypto Council (PCC) and allocate 2,000MW electricity despite the digital asset being officially banned and not recognized by the central bank as legal tender.