The nation is on the verge of framing regulations for digital assets, a strategic move to lure international investments and enhance the local cryptocurrency system , according to Bilal bin Saqib, CEO of the state-supported Pakistan Crypto Council (PCC), which is focused on weaving blockchain and cryptocurrency innovations into the fabric of the national finance system.
The plan is motivated by the notion that Trump's potential return to leadership in the U.S. could energize the crypto sector.
In an interview with Bloomberg, Saqib highlighted that the timing couldn't be better, stating that Trump's return to power acts as a strong positive force for the crypto industry.
“He made history by being the first sitting U.S. President to address a crypto or Bitcoin conference in New York,” Saqib remarked.
More Crypto All The Time
As CEO of PCC and chief crypto advisor to Pakistan's finance minister, Saqib pointed out that Trump is essentially rewriting the playbook by initiating a crypto task force and proposing a U.S. Bitcoin Reserve.
“This is akin to the world's largest economy treating cryptocurrency as a crucial national asset, on par with gold or oil reserves for national security and resilience,” Saqib elucidated.
Saqib argued that the U.S.'s pro-crypto stance could catalyze other nations to follow suit. As Trump prioritizes crypto on the national agenda, countries like Pakistan must adapt or risk being left behind.
Saqib expressed Pakistan's readiness to integrate into the digital era, underscoring an ambition to establish an ecosystem supportive of blockchain and crypto advancements, thereby fostering investment and growth.
Saqib envisions Pakistan emerging as a leading player in the realm of blockchain-driven finance, drawing worldwide investment by capitalizing on a young, dynamic populace with 60% below 30.
Besides this demographic advantage, the country boasts a 'Web3 native workforce keen to innovate,' according to Saqib.
When questioned about cryptocurrencies' legal status, Saqib confirmed ambitions to legalize them, reaffirming the objective of building a robust regulatory framework for digital assets.
Opportunities for Global Investors
Elaborating on opportunities for international financiers, Saqib highlighted goals to ensure stability, scalability, and regulatory transparency.
He noted ongoing efforts to create regulatory sandboxes to streamline growth for crypto companies within a controlled, rule-abiding setting.
He emphasized that Pakistan holds competitive edges over established centers like Dubai and Singapore, notably lower operating expenses and a significant native market with a GDP surpassing $360 billion.
Saqib also touched on plans to learn from the regulatory paths of frontruns like the UAE, Nigeria, Turkey, Singapore, and Hong Kong, through active engagement and shared learning experiences, to refine Pakistan's own regulatory strategy.
Discussing tax policies for crypto, Saqib cautioned that excessive taxation could stifle innovation. Pakistan aims for a balanced, growth-centric tax regime to attract crypto enterprises while ensuring alignment with national guidelines.
Currently, crypto does not have full legal status in Pakistan.
However, significant progress looms, with the State Bank of Pakistan (SBP) proposing a framework to officially recognize digital currencies, including cryptocurrencies, potentially granting them legal currency status. This proposal awaits federal and parliamentary endorsement.
Meanwhile, Pakistan is striving to become a cryptocurrency epicenter in South Asia, indicating a shift towards embracing blockchain innovations and digital assets.
