Rain Financial, a cryptocurrency trading platform based in Bahrain, is urging local officials to establish a legislative framework for the formalization of crypto trading in Pakistan.
Bitcoin and cryptocurrency mining were flourishing in Pakistan until April 2018 when the government banned trading and mining the virtual currencies. There is still a growing mining industry despite the fact that many mining farms have been shut down since this ban was implemented. Bitcoin mining pools like ViaBTC, Braiins and Slush Pool saw an increase in the number of people mining bitcoin and other crypto currencies at home because of the ban.
Read more: Pakistan’s foray into cryptocurrencies: Financial revolution or regulatory dilemma?
Rain Financial Country General Manager Zeeshan Ahmed told Dawn in a recent interview that trading in crypto assets — digital currencies in which transactions are verified and recorded by a decentralized system — is currently 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.
Dr. Reza Baqir, former governor State Bank of Pakistan (SBP) said in March the hazards of using cryptocurrency outweighed the benefits. Previously, the central bank issued an official notice warning the public to be cautious and avoid trading cryptocurrencies.
Read more: The Crypto Conundrum and Pakistan!
Mr. Zeeshan Ahmed said, expressed hope that the authorities will realize the advantages of formalizing an action that’s already in practice outside of the regulatory sphere.
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 SBP doesn’t recognize cryptocurrencies as legal tender and, as such, hasn’t licensed any exchange to assist their trading.
Nonetheless, Pakistanis trade digital currency in peer-to-peer transactions on crypto exchanges such as Binance. The buyer then sends money to the seller within a short time frame and provides proof of payment to the trading site to obtain possession. Alternatively, a hundi/hawala channel can be used to buy or sell coins on a crypto exchange. Because of the unregulated trading structure, the government receives no tax on any capital gains booked by investors.
Mr. Zeeshan Ahmed explained the exchange is a major crypto trading platform in the markets it already operates in. The estimated volume of crypto trading in 2021 was close to $100 billion. “Our share was $2bn. A regional player currently, we’re poised to become a global one,” he said.
Crypto aficionados promote digital currencies as a secure medium of exchange, store of value, inflation hedge, and safe investment in the aftermath of a crash – characteristics that have conspicuously been missing from the 10,000-plus cryptocurrencies that currently exist.
Rain Financials’ bid to enter the Pakistani market couldn’t have come at a less opportune time. As much as $2 trillion has been wiped out of the combined market capitalization of cryptocurrencies over the last six months. The crash is so big that China’s Blockchain-based Service Network, a government-linked initiative to promote the commercial adoption of blockchain technology, has called cryptocurrencies the biggest Ponzi scheme in the history of humankind.
Mr. Ahmed stated that temporary setbacks should not be interpreted as the final verdict of history. In his opinion, the continued evolution of cryptocurrencies is as significant as the industrial revolution.
In short-term, this volatility seems to be excessive, but it is not. He said that worldwide crypto adoption rate is only 7 percent observing that volatility will come down in the long run.
Mr. ZeeshanAhmed anticipates that whenever the regulators enable legal trading of cryptocurrencies, Pakistan will be a high-volume, low-transaction market for Rain Financial. So far, over 2 million Pakistanis have downloaded crypto exchange apps. He expects the figure to quadruple once the government grants legal protection to cryptocurrency.
FAQs
Despite the absence of formal recognition, cryptocurrencies like Bitcoin are neither illegal nor officially regulated in Pakistan. The State Bank of Pakistan has issued public notices cautioning against the use of virtual currencies and has not authorized any entities for crypto transactions.
Which platform is best for crypto trading in Pakistan? ›
Binance is undoubtedly one of the best crypto trading apps available in Pakistan. Its extensive range of features, robust security measures, and high liquidity make it an excellent choice for both novice and experienced traders.
Is crypto legal in Pakistan in 2024? ›
Cryptocurrencies like Bitcoin are not officially regulated in Pakistan, however, it is not illegal. As of 16 January 2021, the State Bank of Pakistan has not authorized any individuals or organizations to carry out the sale, purchase, exchange, and investment of virtual currencies, coins, and tokens.
Does Pakistan support cryptocurrency? ›
The good news for local crypto enthusiasts is that cryptocurrency is not illegal in Pakistan, rather it falls in a gray area as the government has no specific rules against it. However, this has not stopped the Pakistanis from trading cryptocurrencies.
What is the status of cryptocurrency in Pakistan? ›
Legal status of cryptocurrency in Pakistan
While the State Bank of Pakistan (SBP) has warned against the use of digital currencies, there are no laws that explicitly prohibit their use. In April 2018, the SBP issued a circular that prohibited banks and financial institutions from dealing with cryptocurrencies.
Who is the crypto expert in Pakistan? ›
Waqar Zaka (Urdu: وقار ذکا) is a Pakistani VJ-turned-television host and a cryptocurrency enthusiast.
Is Coinbase allowed in Pakistan? ›
Coinbase has certain restrictions and limitations on the countries where its services are available, and Pakistan is not listed among the supported countries.
What is the future of cryptocurrency in Pakistan? ›
Revenue in the Cryptocurrencies market is projected to reach US$19.6m in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 16.04% resulting in a projected total amount of US$35.5m by 2028.
Is crypto halal in Islam? ›
Among the major cryptocurrencies, Bitcoin, Ethereum, and Dogecoin come under the halal category, while Shiba Inu (SHIB) token, Alpha, and PancakeSwap (CAKE) are labelled haram. To use CryptoHalal, a user must enter the name of the cryptocurrency.
What is the price of cryptocurrency in Pakistan? ›
The current price of Bitcoin is PKR 18,402,610.40 per BTC. With a circulating supply of 19,688,518 BTC, it means that Bitcoin has a total market cap of PKR 363,071,060,030,376.00. The amount of Bitcoin traded has risen by PKR 1,033,774,517,076.95 in the last 24 hours, which is a 14.76% increase.
Now, you can easily and securely buy Bitcoin in Pakistan using the Pakistani Rupee with contemporary payment methods, such as bank cards, wire transfers, and mobile purchases.
Which banks allow cryptocurrency purchases in Pakistan? ›
As of my knowledge there are no banks in Pakistan that directly allow the use of cryptocurrency. The State Bank of Pakistan (SBP) has issued a circular to all banks in the country warning them against any transactions involving cryptocurrencies, stating that they are not legal tenders in Pakistan.
Which crypto wallet can use in Pakistan? ›
Pakistan is served by many overseas exchanges and has a population with high volumes of trading and holding crypto: mostly by using offshore wallets such as Neteller, Skrill, and Payoneer.
How many crypto owners are there in Pakistan? ›
Kenya: With 8.52% of the population owning cryptocurrencies, Kenya has a high cryptocurrency ownership rate. Pakistan: With 26 million cryptocurrency owners, Pakistan has a large #crypto market. Nigeria: 22 million people in Nigeria currently own cryptocurrencies, making it a country with a large #trading database.
Is Binance is legal in Pakistan? ›
The committee directed authorities to block cryptocurrency services and websites dealing with the instrument in Pakistan. Minister of State for Finance and Revenue Dr. Aisha Ghaus Pasha informed the committee that cryptocurrencies will never be legalized in Pakistan.
How many people invest in crypto in Pakistan? ›
It is estimated that over 9.0 million people, 4.1% of Pakistan's total population, currently own cryptocurrency.
Which is no 1 trading app in Pakistan? ›
Best Mobile Trading App in Pakistan for 2024 - TOP 5 Comparison
| Exness | XT.com |
|---|
| Withdrawal speed | 8.79 | 8.3 |
| Customer Support work | 9.29 | 7.16 |
| Variety of instruments | 8.02 | 7.8 |
| Trading platform | 1 | 7.53 |
5 more rowsJan 11, 2024
XM broker is a regulated forex broker that offers a mobile app for traders in Pakistan. The app provides access to over 1000 financial instruments, including forex, stocks, and commodities. It also offers educational materials and market analysis to help traders stay informed.
Which platform is best for crypto trading? ›
Best Crypto App in India
- CoinDCX: Best Crypto Exchange for Advanced Traders.
- CoinSwitch: Best Crypto App for Beginners.
- WazirX: Best Crypto Exchange for Novice and Intermediate Traders.
- Mudrex: Best Crypto App for Theme-based Crypto Baskets.
- ZebPay: Best Crypto Exchange for Intraday Trading and Crypto Lending.
