Digital Currency Regulation Bill tabled in NA body on Finance

National Assembly Standing Committee on Finance met on Thursday under the chair of Dr Nafisa Shah. During the meeting Secretary Finance told the committee members that Crypto Council has been set up on the executive orders of Prime Minister Shehbaz Sharif. 

Finance Secretary Imdadullah Bosal briefed the committee that cryptocurrency is still banned and illegal in Pakistan and only the council had been formed. The State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) have not lifted their bans on crypto trading, he added.  He clarified that the recently formed Pakistan Crypto Council, created under an executive order of the prime minister, is a preliminary body tasked with developing a framework -- not a regulatory authority.

PPP MNA Sharmila Farooqi told the committee that there are no regulation in the country despite the fact that Pakistan was quickly moving on digital currency. On the occasion Farooqi table Digital Currency Regulation Bill in the NA body. She added that crypto is a decentralized currency. She said Pakistan has recently came out of FATF list therefore Pakistan should take care of protecting crypto currency from money laundering. 

What is the legal status of the Crypto Council in Pakistan? Dr. Nafisa Shah questioned. Secretary Finance said the legal approval of the Crypto Council has not been completed yet. He added that Crypto Council has been given preliminary work. Secretary Finance said there was need of the hour that government should set up Crypto Council or Authority. Finance Secretary said Crypto Council was doing preliminary work and rregulations were needed for cryptocurrency. He said due to it ccryptocurrency is banned in Pakistan as State Bank of Pakistan has banned investment in crypto coins. 

The State Bank of Pakistan officials told the meeting that National Working Group on Digital Currency has been established and ssuggestions have been given to the government for setting up of Crypto Council. 

The State Bank officials made it clear that a legal framework will be required for cryptocurrency. A national working group on digital currency has been established. 

Mirza Ikhtiar Baig said Pakistani youth were investing in cryptocurrency, adding that the value of cryptocurrency is increasing due to government measures. Mirza Ikhtiar Baig urged the government to announce clear policy whether cryptocurrency is legal or not. 

He said the government has set the electricity rate for crypto mining at 7 to 8 cents per unit. Ikhtiar Baig said Pakistan's industries were demanding 9 cents per unit. He questioned why the government was not providing electricity to industries at 9 cents. He said if cheap electricity is provided to industries, exports can increase. He urged the government to provide electricity to residential consumers at this rate. National Assembly Standing Committee on Finance Osama Ahmed said there was no ban on holding cryptocurrency in Pakistan. He claimed cryptocurrency was being used as a money laundering tool in Pakistan. 

Osama Ahmed said earlier, money was sent out through Hawala Hundi, now cryptocurrency is being used. He said cryptocurrency was being used to order cars from Japan. Has the State Bank taken any action on this? Osama Ahmed questioned from central bank officials. 

He questioned has the government decided to give 2,000 megawatts of electricity to the private sector? Is the government mining crypto currency under its auspices. The State Bank of Pakistan official said FIA takes action against illegal cryptocurrency business. Sharmila Farooqi questioned how the government made decision to allocate 2,000 megawatts of electricity to mining? Has the government conducted a detailed review of this decision Dr. Sharmila Farooqi questioned as Pakistan itself was facing from load shedding. 

Reporter: Waqas Azeem