Regulated cryptocurrency trading may be a goldmine of money for Pakistan

Industry executives said that a 15% tax on cryptocurrency trading could bring in at least $90 million (about Rs19 billion) per year if strict restrictions are implemented.

Pakistan’s entire cryptocurrency transactions were valued at $20 billion last year. A total of $650 million was earned profit. “Through a 30% tax on crypto trading profits, the United States and India are collecting billions of dollars.” “We can start with a 15% tax,” Zeeshan Ahmed, Country General Manager Rain Financial Inc, remarked during a conversation with media about the role of crypto assets/currency in the economy.

Aatiqa Lateef, Director of Public Policy at Rain Financial Inc., stood alongside Ahmed. Regulators throughout the world have been noted initially opposing the movement, but as the trend gains traction, they join the party by putting the phenomenon under the regulatory regime, Ahmed added.

“We are in constant touch with all regulators including SBP, PTA, and FBR and others and will be ready to assist them,” Ahmed said adding that the government had constituted committees to deliberate upon different scenarios and come up with the policy to regularise crypto as an asset or currency.

He said the government might take 12-18 months to make up its mind for it. “For proper security, the crypto transactions should be treated as legal and placed under regulations following which they can consider barring conversion from Crypto into rupee account outside the country. If required they would be ready to accept more regulations in order to ensure security,” he added.

In light of the growth of virtual assets, the move requires crypto businesses, such as virtual asset service providers, to keep Know Your Customer (KYC) information and financial transaction records for five years to ensure cyber security in the area of payments and financial markets for citizens, while protecting their data, fundamental rights, and economic freedom.