Cryptos Struggle With Mass Adoption in Pakistan

Almost a year after a blanket ban on cryptocurrencies, Pakistan has come a long way in its attitude toward the space.

A recent notice by the State Bank of Pakistan declared that institutions willing to work in the sphere of "Electronic money" can now get licenced by the SBP to "Issue e-money for the purpose of digital payments."

As reported by a Pakistani news association, The Express Tribune, the government hosted a meeting at the Islamabad office of the State Bank of Pakistan on April 1 for the discussion and formation of crypto regulations, termed Electronic Money Institutions regulation.

This month, the FATF again voiced concerns, spurring the Pakistan government to take a more serious look at the issues.

"This step reflects the forward-thinking of Pakistani Government, and with a few more regulations and reforms, cryptos will get better space for development in Pakistan. But there is much more required to do beforehand."

The ban on cryptocurrencies in Pakistan was first reported on April 6, 2018, after the central bank of Pakistan released a statement declaring that no individual or entity was authorized to issue, exchange or invest in any such virtual currencies/coins/tokens.

Now, the Pakistani government is poised to start a serious examination of precautions that would allow cryptos to become a tool for the nation and stop them from being used for money laundering, terrorism funding and other illegal purposes.

There has hardly been any sign of crypto adoption in the past 12 months in Pakistan due to the crypto ban.

"The only way to bring crypto to the masses," Ahsan said, "Is to educate them about it." And he says that, at this pace, Pakistan will "Need a few years to accelerate and make crypto mass-adoption a phenomenon."

On the other hand, some entrepreneurs from Pakistan have shown great interest in blockchain.