The Securities and Exchange Commission of Pakistan (SECP) is set on developing regulatory guidelines for crypto coins. This was revealed as part of a paper on private digital assets published by SECP on November 6th.
The paper is a step closer to Pakistan’s endeavor at developing new frameworks for how to deal with digital currencies.
The main purpose revealed in the document is to define and recognize the digital asset in the country, but also to find a “way forward for designing and developing a robust regulatory regime at par with the World for regulating Digital Assets,”
The paper attempts to categorize two different approaches to regulating cryptocurrencies.
The first one is to follow existing rules on how to regulate and restrict cryptos, but also not abandoning the possibility of outright banning cryptocurrency service providers. The regulator thinks that through this approach service providers will have to adapt to the current regulatory environment.
The second approach is based on the CFTC procedure of “let-things-happen”, also known as the “do-not-harm-approach”. Here the markets industry sector is seen as a dynamic and ever-evolving industry, and innovation is a key element to keeping it as fluid as possible. Thus the second approach stressed the importance of innovation.
However, the report of SECP does not include any information on future plans for a Pakistani central bank digital currency (CBDC), even if the country has declared that it will develop one by 2025.