Islamabad: The biggest challenge with Pakistan’s cryptocurrencies is the lack of knowledge and the need for early capacity building of regulators, a stakeholder at a meeting with the Treasury said Tuesday.
Zeeshan Ahmed, general manager of RAIN Pakistan, said that if capital gains tax is levied on crypto assets, it could be around $ 90 million.
RAIN, one of the leading international players in the field and the first licensed crypto asset company, proposed that the government tax crypto assets and developed regulations in this regard.
“The West admits that crypto assets continue to be traded in the gray area, as well as in Pakistan,” said Ahmed.
“We suggest that Pakistan should also tax and regulate crypto assets as Europe does so and the Gulf countries are aware of it,” he added.
At a meeting with Treasury officials, RAIN executives emphasized that cryptocurrencies are a very new area and lack the necessary due diligence and technical guidance.
The ministry was informed that Pakistanis were vulnerable to fraud while trading crypto assets by irregular means.
Over 8,000 cryptocurrencies are traded on the dark web. Most of these are fraudulent and do not protect investors. Therefore, it was necessary to be aware of this activity.
To address this challenge, they proposed that RAIN share its experience as the first licensee to operate crypto exchanges with crypto brokers in the Gulf region. The company operates over 80 cryptocurrencies and meets all regulatory requirements.
Stakeholders have already refused to launch cryptocurrencies and crypto assets in the country immediately, but international players are demanding that authorities follow the global path and harness the potential of digital currencies. increase.
Aatiqa Lateef, Director of Public Policy at RAIN, said:
Explaining to the media the importance of crypto assets in the modern economy, she said that 44 developing and relevant authorities from developing countries are meeting in El Salvador on crypto asset regulation.
“Cryptocurrencies or crypto assets are used primarily in developed countries because they are referred to differently in different jurisdictions,” says Lateef.
“But the El Salvador conference is about discussing the best regulatory framework for a less advanced economy,” she added.
The media reported that while major companies, including Starbucks and Emirates, began receiving cryptocurrency payments, India imposed a 31 percent tax on profits from them.
“This is the first time a cryptocurrency exchange has begun to register with an Indian tax collector,” Ahmed said, and legislation continues.
RAIN officials said the regional challenges were primarily capacity building and understanding of crypto assets.
Pakistan ranks third in the world for cryptocurrency subscriptions and usage is growing rapidly.
Meanwhile, the Sind High Court has instructed the Ministry of Justice and the Treasury to finalize the matter. Earlier, Pakistan’s Securities and Exchange Commission and Pakistan’s State Bank have decided to deny cryptocurrencies because they could cause anger at the International Monetary Fund and the Task Force on Financial Activities.
Released at dawn on May 18, 2022