The Pakistani government is moving to legalize digital currencies by amending the State Bank of Pakistan (SBP) Act. This change will allow the central bank to issue and regulate cryptocurrencies while enabling dual nationals to hold senior positions, including governor and deputy governor roles.
Pakistan to Legalize Cryptocurrencies with New Legislation
The proposed revisions will introduce “digital currency” into the SBP Act, granting the bank authority over both physical and digital assets. Additionally, a new subsidiary will be established to develop and manage digital payment systems, ensuring a seamless integration of digital currencies.
To encourage a diverse talent pool, the government plans to lift restrictions on dual nationals in key positions, responding to the need for skilled professionals in the financial sector. Finance Minister Muhammad Aurangzeb has underscored the importance of adapting nationality requirements to attract qualified candidates.
“We may need to bring a few things back to Parliament, particularly regarding nationality.”
SBP Act Overhaul: The Path to a Regulated Cryptocurrency Market
The government also intends to impose penalties for unauthorized digital currency issuance, with fines set at double the value of illegally issued assets. The SBP will maintain the ability to report suspicious transactions to the Financial Intelligence Unit-Netherlands (FIU-NL), enhancing regulatory oversight.
Pakistan on the Brink of Digital Currency Legalization
This initiative comes after a Sindh High Court directive for the government to create a regulatory framework for crypto assets. The SBP is also accelerating plans for a digital rupee, targeting a launch by 2025 to offer a competitive alternative amid rising inflation.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
