Government Proposes Amendments to Legalize Crypto
In a significant shift in financial policy, the Pakistani government has proposed amendments to the SBP Act, aiming to legalize cryptocurrency in the country. ๐
Key Highlights:
- The amendments would allow the State Bank of Pakistan (SBP) to issue digital currency and manage both physical and digital currencies. ๐ฐ
- The SBP would be granted power to conduct "central bank digital currency" business, with CBDCs operating as legal tender. ๐
- A subsidiary would be established to develop and operate digital payment systems. ๐
A Shift from Caution to Regulation
Historically, Pakistan's central bank has been cautious about cryptocurrencies, warning about associated risks. ๐จ However, the proposed amendments signal a shift towards regulatory oversight and integration of digital currencies into the financial framework. ๐
Penalties for Unauthorized Issuance
The amendments introduce penalties for unauthorized issuance of digital currencies, including fines equal to twice the value of any illegal currency created. ๐ซ
No Timeline Announced
While no specific timeline has been announced for federal cabinet approval, these changes could mark a significant turning point for Pakistan's financial landscape. ๐
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