Pakistanis own $ 20 billion in crypto, report says – bitcoin news

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In the absence of regulation, Pakistanis have invested large sums of money in digital assets. New research claims Pakistanis hold some $ 20 billion in cryptocurrency, allegedly more than their central bank has in foreign exchange reserves.

Government urges regulation as study shows Pakistanis hold $ 20 billion in cryptocurrency

The Pakistani nation has more cryptocurrency than foreign exchange reserves, according to Pakistan Frontier and other media citing a new report from the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). The study, produced by the association’s Policy Advisory Board (PAB), estimated that Pakistanis held cryptocurrency worth $ 20 billion during the period 2020-21.

The authors point out that the popularity of digital currencies like bitcoin has grown rapidly over the past two years. With market growth of 711% in 12 months, Pakistan has climbed to third place in this year’s Global Crypto Adoption Index, calculated by blockchain forensic firm Chainalysis. The country is behind only India and Vietnam.

However, the true total of crypto holdings may be much higher than the figure mentioned in the PAB report. Many residents of the country buy coins through peer-to-peer deals and these investments go largely undetected, the Business Recorder notes in an article. Cryptocurrencies are still a gray area in Pakistan as the country’s current legislation does not cover digital assets.

At a press conference, FPCCI Chairman Nasir Hayat Magoon urged Islamabad to introduce government policy that would facilitate cryptocurrency transactions, noting that neighboring India has already taken steps to implement implement certain rules. Magoon insisted that such regulations are needed so that investors can trade their coins within the country rather than places like Dubai.

The report recommends that Pakistan adopt a legal framework aligned with guidelines issued by the Financial Action Task Force and the International Monetary Fund. The study was published after Pakistan’s Minister of State for Parliamentary Affairs Ali Muhammad Khan said in October that the government was not opposed to cryptocurrency investments in general. Pakistani courts have also called on the executive and legislative branches to introduce crypto regulations.

Tags in this story Bitcoin, Coins, Crypto, Crypto Holdings, crypto investments, Crypto investors, Cryptocurrencies, Cryptocurrency, Digital assets, foreign exchange reserves, holdings, Investments, Investors, Islamabad, Pakistan, Pakistani, Pakistani, Settlement, Regulation, report, Research, rules, study

Do you expect Pakistani authorities to regulate the country’s crypto space soon? Let us know in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who likes Hitchens’ quote: “Being a writer is what I am, rather than what I do. Besides crypto, blockchain, and fintech, international politics and economics are two other sources of inspiration.

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