According to English-language Pakistani crypto news outlet the Express Tribune reports, Pakistan is now aiming to bring into force a new cryptocurrency regulatory framework in an effort to fight back the financial crime and to improve its track record.
The reports show that Pakistan is trying to lower down the crime rates regarding money laundering and terrorist financing so now they are considering a new licensing scheme for electronic money institutions. Another Pakistani news outlet Dunya News says that crypto trading has been banned in the country since last year. The Express Tribune’s reports note:
“These regulations will help combating money laundering and terrorism financing while it will also help regulation of digital currency throughout the country.’’
Implementing the new regulation will take place in a special ceremony at the offices of the Central Bank of Pakistan-The State Pakistani Bank on Monday where Asad Umar who is the federal minister for finance and the governor of the bank Tariq Bajwa will also be there.
The sources say that this move is a step ahead in the effort to satisfy the demands from the international monitoring body The Finance Action Task Force (FATF) which has much time, expressed concerns about how the terrorist financing is always done with the help of cryptocurrency. The Finance Action Task Force noted previously that Pakistan has made significant progress with the new action plan for fighting terrorist financing. The task force even stated:
“Given the limited progress on action plan items […] the FATF urges Pakistan to swiftly complete its action plan, particularly those with timelines of May 2019.’’
Meanwhile, a couple of days ago, the financial regulator of Pakistan and the Securities and Exchange Commission of Pakistan (SECP), announced their action plan against nine companies that are believed to be using cryptocurrency into illegal acts. Both of the agencies stated:
“Such schemes, offering hefty profits and incentives can deprive the unsuspecting public of their hard-earned money who fall prey to the inducements. It is further clarified that a mere registration of a company with SECP does not mean that it can get involved in unauthorized and unlawful activities.”