KARACHI:
Recently, the Pakistani government announced plans to ban crypto-currency services on the internet. The decision aims to prevent the use of crypto-currency in Pakistan but fails to recognise the potential benefits that can be derived from embracing this innovative technology. The financial landscape of the world is rapidly evolving, and crypto-currencies have emerged as a promising avenue for economic growth and development. While it is essential to exercise caution and establish robust regulations to mitigate risks associated with crypto-currencies, an outright ban seems counterproductive and denies Pakistan the opportunity to harness the potential of this emerging market.
Several countries across the globe have embraced crypto-currencies and are reaping the benefits in their economies. For instance, Switzerland has become a global hub for blockchain and crypto-related businesses. The Swiss government’s favourable policies and regulatory framework have attracted numerous companies, creating a thriving ecosystem that fosters innovation and generates employment opportunities. Additionally, countries such as Japan and South Korea have also recognised the potential of crypto-currencies and have implemented regulatory frameworks to ensure consumer protection while encouraging growth in this sector.
The Pakistani government must reconsider its verdict on crypto-currencies. A more balanced approach can be adopted by introducing comprehensive regulations that safeguard the interests of investors and mitigate potential risks. The Financial Action Task Force’s concerns regarding money laundering and illicit activities associated with crypto-currencies are valid and must be addressed. However, a blanket ban on crypto-currency services is not the solution. Instead, the government should work closely with the State Bank of Pakistan and the Ministry of Information and Technology to develop a robust regulatory framework that ensures compliance, protects investors, and prevents any misuse of this technology.
Muhammad Hussain Raza
Karachi
Published in The Express Tribune, May 21st, 2023.
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