Impact of Regularizing Cryptocurrency in Pakistan
By Farzain Razak and Faran Shiekh
Islamabad
Global innovation brings a new concept of funds’ transfer irrespective of the fact how much and how big the amount is involved and the transactions will be complete within a few seconds from anywhere to anyone.
One of the latest innovations in funds’ transfer is cryptocurrency which is a digital payment system worldwide and it is also getting popular in Pakistan due to certain reasons.
This system of funds transfer does not involve banks to verify transactions as it got its own way of operating.
As it is a digital currency so there is no role or use of physical money in it. Payments made through cryptocurrency are basically digital entries to an online database.
The cryptocurrency is used via dark web transactions because it is illegal in almost every country except a few. Basically actual concept of cryptocurrency was to transfer value from one device to another device which is now being used for financial transactions.
Cryptocurrency trading is most rapidly being adopted in today’s culture. This is the decentralized currency system based on principle where there is no one who is controlling the system. It is not similar as countries’ print paper currency which is printed as much as required. Actually this is a process of mining crypto which is totally calculated by the systems.
Most countries avoid regulating cryptocurrencies in their countries due to unrecorded transections. Blockchain allows digital information to be recorded in their system and this information neither can be edited or destroyed.
Most of the countries have banned crypto trading and but a very few countries have allowed trading in it. In Pakistan, most of the people are doing crypto trading which involves high level of investment along with small traders involvement who have also started doing trading in it due to increasing level of awareness in the country in this regard.
Newcomer are known as gamblers in the trading market because they do not do their own technical and fundamental analysis.
Most of the people face huge losses and these losses eventually create impact on the economy. Massive amount is traded in the crypto market on daily basis. There is 1.2 trillion-dollar volume of global crypto trading. A hype has been spread that Pakistan is facing Rs18 billion loss in crypto market which is not true.
There has been talk that due to some massive anonyms transaction from Binance smart chain, the Pakistani government is demanding the transaction records and the history. However, this thing is also not true due to number of factors involved in it.
keeping in view its popularity and potential the government of Pakistan should regulate the cryptocurrency and it must also define criteria for it for doing business.
The government of Pakistan after making decision pertaining to regulate this digital currency should introduce a few tests by involving the assistance of crypto experts. Only those candidates should be awarded licenses to deal in crypto trading who pass the test. The test must be taken under the supervision of crypto experts and it should also be bearing the uniform benchmarks
Those who qualify the test should be awarded the license of crypto trading and the government must also award them its support besides extending other benefits to them.
Under the adopted criteria and formed regulations, the government should keep itself aware of the transactions in profit and loss ratio.
Moreover the future initiatives should also be launched as per available data of trading volume.
When the trade in this reference has been declared legal and the traders have been bestowed with licenses of trading then it would encourage more people to participate in it which eventually would increase opportunities of earning.
The situation in Pakistan is not ideal to provide jobs to every fresh graduate so our government should take this initiative as it is a win win situation for it and others who want to participate in it.
When cryptocurrency is declared legal in the country then it would create new earning opportunities for people because crypto is one of the easiest and the fastest way to become rich.
Ends
