Pakistani Regulators to Introduce Crypto Regulations based on FATF’s Electronic Money Institutions Licenses
Forward-thinking nations across the globe have started putting in place amenable regulations for their cryptospace in a bid to remain at the forefront of innovation.
According to a reports on April 1, 2019, Pakistani authorities are now looking to implement amenable laws to govern the local crypto and distributed ledger technology (DLT) industry.
Pakistan Regulating Cryptos
Per sources close to the matter, the federal government of Pakistan is set to implement Electronic Money Institutions (EMIs) laws following recommendations from the Financial Action Task Force (FATF).
At current, the framework is yet to be made public, however, going by the draft regulations published by the Pakistani central bank last year, crypto-linked businesses would be required to meet several conditions before securing an operating license from the government and companies that do not meet the set standards will face suspension or get their licenses revoked.
Reportedly, crypto-focused businesses will be required to have a specific amount of capital, properly scrutinize their employees, put in place robust consumer protection measures and carry out strict know-your-customer (KYC) and anti-money-laundering (AML) operations.
The new regulatory framework is aimed at curbing the activities of bad actors, foster transparency and sanitize the space.
“These regulations is aimed at combating the menace of money laundering and terrorism financing, while also sanitizing the entire Pakistani crypto industry,” read the statement.
To officially mark the commencement of the new regulations, the government is reportedly planning to organize a ceremony at the Islamabad office of the State bank of Pakistan shortly.
Global Crypto Regulation Important
While bitcoin and other digital assets provides with masses with freedom, privacy and a cost-efficient way to carry out financial transactions on a peer-to-peer basis, rogue actors continually try to use these nascent cryptoassets for their selfish interests.
Against that backdrop, the FATF has made it clear that it would publish robust guidelines for international crypto regulation later in June 2019.
In October 2018, the FATF reportedly urged all nations to implement rules for cryptocurrency exchanges, bitcoin-linked businesses, initial coin offering (ICO) organizers and more.
“It is essential for all countries to take consolidated action to prevent and completely eradicate the use of digital assets for money laundering and terrorist financing,” said the FATF at the time.
In the same vein, other financial regulators in various jurisdictions, including the U.S Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and several others are making active plans to regulate cryptos.
As reported by Bitcoin Exchange Guide in December 2018, the U.S. CFTC published a “Request for Input,” aimed at getting relevant feedback from stakeholders in the U.S. crypto industry, to enable it to design a regulatory framework that would be to the good of all.