During a recent meeting of the National Assembly Standing Committee on Finance, MNA Sharmila Farooqi of the Pakistan Peoples Party (PPP) introduced a digital currency regulation bill in Pakistan. Her proposal triggered a lively debate among committee members and officials on the future of cryptocurrency in the country.
Farooqi began by pointing out that Pakistan is heading towards a digital future. However, she said the country still lacks a proper legal framework to regulate cryptocurrencies. “There are no regulations for cryptocurrency,” she stated. She stressed the need to develop laws that align with global standards.
Sharmila Farooqi Proposes Digital Currency Regulation Bill, Sparks Debate in National Assembly
She also expressed concern about the misuse of cryptocurrencies. Referring to Pakistan’s removal from the Financial Action Task Force (FATF) grey list in 2022, Farooqi questioned how the country would prevent cryptocurrencies from being used for money laundering or terror financing. “How will Pakistan protect cryptocurrency from money laundering?” she asked.
Her remarks brought different views from other members of the committee. Finance Secretary Imdadullah Bosal responded by stating that the ban on cryptocurrency was still in effect across Pakistan. He emphasized the need for regulation before any formal adoption. “Preliminary work is underway in the Crypto Council, but there is a need for proper regulations,” he said.
Bosal explained that while the Pakistan Crypto Council (PCC) was launched earlier this year to manage and guide the use of digital assets and blockchain technology, it had yet to receive full legal approval. “The Council must address the concerns raised in the meeting today,” he added.
Committee member Osama Ahmed challenged the idea of a complete ban. He said people were already using cryptocurrency in Pakistan, especially to import vehicles from Japan. “There is no ban on holding cryptocurrency,” he said. He questioned whether the State Bank of Pakistan (SBP) was monitoring these activities or crypto mining operations in the country.
SBP official Sohail Jawad supported the finance secretary’s stance. He said the SBP does not recognize crypto assets and that a proper legal framework is required. Jawad also noted that the National Working Group on Digital Currency had been formed and had already submitted suggestions to the Crypto Council. He added, “Only El Salvador has legalised cryptocurrency, and now they are reversing this decision.”
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MNA Mirza Ikhtiar Baig highlighted the growing interest of young people in cryptocurrency. He called for the government to take a clear stance. “The value of cryptocurrency is increasing, so the government should clearly state whether it is legal or not,” he said.
Farooqi also raised serious concerns about the government’s recent decision to allocate 2,000 megawatts of electricity for bitcoin mining and AI data centres. She asked whether a detailed review had been conducted and highlighted that Pakistan was already facing power shortages. “How was the decision made while the country suffers from load shedding?” she questioned.
Her bill has brought the issue of cryptocurrency regulation into the spotlight, opening a broader debate on how Pakistan should handle the rise of digital currencies in a rapidly changing financial landscape.