KARACHI: Bahrain-based Rain Financial, a trading platform for cryptocurrencies, is persuading local regulators to issue a legal framework for the formalisation of crypto trading in Pakistan.
Speaking to Dawn in a recent interview, Rain Financial Country General Manager Zeeshan Ahmed said the trading in crypto assets — digital currencies in which transactions are verified and recorded by a decentralised system — currently exists in a regulatory “no man’s land”.
“There’s no law that declares crypto illegal. Have the authorities frowned upon crypto? Yes. But issuing a statement is one thing and translating it into a law is another,” he said.
Former central bank governor Dr Reza Baqir said in March the risks of using cryptocurrencies outstripped benefits. Earlier, the central bank issued a formal notice advising the general public to be cautious of, and refrain from, trading cryptocurrencies.
“Negotiations are taking place. These are large-impact decisions involving lots of ideas and proposals,” Mr Ahmed said, expressing hope that the authorities will realise the benefits of formalising an activity that’s already going on outside of the regulatory ambit.
According to data platform website Chainalysis, Pakistanis booked profits of more than $604 million in crypto trading during 2021. Pakistan is also among the top-ranking countries on the Global Crypto Adoption Index. This is despite the fact that the central bank doesn’t recognise cryptocurrencies…
