Will the Government of Pakistan Legalize Bitcoin and Crypto Mining?

A provincial government in Pakistan has passed a draft resolution that demands the federal government to legalize both Bitcoin and crypto-mining activities.

December 4, 2020, | AtoZ Markets – The Provincial Assembly (MPA) of Khyber Pakhtunkhwa, one of the four provinces in the country, made the official announcement after holding discussions in the midst of a nationwide dialogue asking the federal government to legalize cryptocurrency ownership and bitcoin mining.

This announcement was made by the adviser to the government Zia Ulla Bangash.

Government of Pakistan urged to legalize Bitcoin and crypto mining

Pakistan, with a population of 212 million people, is experiencing " serious economic problems " associated, among other things, with a decrease in production.

“We urge the central government to carefully consider our proposal to legalize cryptocurrency,” reads a resolution signed by councilors and ministers of the assembly.

The proposal is addressed to the Chief Minister of Khyber Pakhtunkhwa Province.

According to the authors of the resolution, the cool climate of the Khyber Pakhtunkhwa region, cheap energy, and the availability of labor make it attractive for cryptocurrency mining.

Read also: Iran Government Allows Bitcoin Mining in Power Plants

In the absence of legal regulation, local bitcoin enthusiast Wakar Zaka, with the help of the Khyber Pakhtunkhwa government, created the region's first mining farm.

“I was able to establish Pakistan's first and largest cryptocurrency mining farm in Khyber Pakhtunkhwa under the guise of a research project,” he said.

Earlier, Zaka demanded through the court to legalize cryptocurrencies in the country. The next hearing in the case will take place on December 17.

Pakistani regulator SCEP to regulate cryptocurrencies

Recall that in April 2018, the Central Bank of Pakistan banned operations with cryptocurrencies, stating that it is not legal tender.

However, As AtoZ markets recently reported, the Securities and Exchange Commission (SECP) of the Islamic Republic of Pakistan is preparing to enact regulations on the trading of digital assets.

SECP says it has the potential to become more mature and improve financial efficiency in areas such as custody and settlement in the digital asset sector, and will actively seek regulatory feedback from market participants and companies in the future.

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