Pakistan’s Regulatory Measures for Cryptocurrency
Authorities in Pakistan are taking significant steps to establish regulatory measures for prominent global cryptocurrency exchanges, granting preliminary approvals for firms like Binance to operate within the country. The Pakistan Virtual Assets Regulatory Authority (PVARA) announced on X that it has issued no objection certificates (NOCs) to both Binance and HTX, allowing them to register in Pakistan and pursue full licensing once local regulations are finalized.
Strategic Oversight and Compliance
This move is part of a strategic approach to ensure that the oversight of crypto service providers aligns with the Anti-Money Laundering (AML) standards set forth by the Financial Action Task Force (FATF).
In their announcement, PVARA emphasized the importance of strong governance and compliance with AML and Combating the Financing of Terrorism (CFT) measures as Pakistan aims to create a trustworthy digital asset landscape. Finance Minister Muhammad Aurangzeb expressed the significance of this NOC framework in promoting responsible innovation and sound financial practices in the nation.
Engagement with Global Leaders
After securing the NOCs, Binance and HTX are now permitted to interact with the Securities and Exchange Commission of Pakistan (SECP), establish local branches, and prepare to apply for full licenses under the upcoming regulations. During a recent engagement, Aurangzeb met with Binance CEO Richard Teng and co-founder Changpeng “CZ” Zhao, along with Tron founder Justin Sun, who currently advises HTX.
Teng described the achievement of the NOC as a “meaningful milestone” for Binance in Pakistan and noted the importance of obtaining AML registration from PVARA, signaling progress towards more extensive local collaboration and licensing.
Future of Digital Assets in Pakistan
The recent development follows PVARA’s first board meeting in August, where the authority discussed initial licensing frameworks, taxation guidelines, and international collaboration strategies. This advancement is also attributed to the efforts of the Pakistan Crypto Council (PCC), which counts CZ as an adviser. Saqib, the chairman of PVARA and the state minister for digital assets, has called for Pakistan to embrace Bitcoin and blockchain technology as essential components of the nation’s future financial infrastructure.
He asserted that digital assets should not be seen merely as speculative assets but as foundational elements for a new financial system catering to the global south, a statement made during the Bitcoin MENA Conference.
Conclusion
In summary, Pakistan’s regulatory landscape for cryptocurrency is evolving, indicating a clear intention from the government to engage with and harness the potential of digital currencies in a structured and compliant manner.
