Regulatory Series on Cryptocurrencies: Pakistani government to unveil crypto-regulations based on FATF

The Pakistani government is intending to regulate domestic cryptocurrency firms under new legislation. The government is likely to introduce Electronic Money Institutions (EMI) regulations as per the recommendations of the Financial Action Task Force (FATF). 

FATF is an intergovernmental organization based in France that creates policies for combating money laundering and other threats to the integrity of the global financial system. It has reportedly been working on international regulations for cryptocurrencies.

Under the new regulations, EMIs would be required to obtain the appropriate license from the central bank to issue e-money for the purpose of digital payments.

While the FATF has cautioned international regulators about the probable illegitimate activities of for cryptocurrencies.

Pakistan’s new framework has yet to be released publicly, and specific requirements will need to be met before the country’s central bank, the State Bank of Pakistan (SBP), can ratify them.

The State Bank of Pakistan (SBP) is considering launching a digital currency by 2025, a report from Dawn has revealed. As per the Electronic Money Institutions (EMI) regulations, crypto firms are expected to abide by certain fundraising requirements, due diligence pertaining to the clients and also ensure the control points to safeguard their clients’ funds.

Currency Strength Index: FxWirePro's hourly BTC is at 164 (bullish), the hourly USD spot index is inching towards -45 level (bearish), while articulating at 13:36 GMT. 

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