Pakistanis Invest $5 Crore In Crypto In Just Six Months: Reports

Pakistani nationals have bought cryptocurrencies worth as much as $5 crore within a period of six months, with about 1,064 people carrying out 2,923 transactions through private banks and foreign exchange firms, news agency ANI has reported quoting the country’s vernacular media.With no regulatory framework on cryptocurrency available in the country, the Federal Investigation Agency is looking for investors and funders and has frozen 1,054 accounts.In a circular issued in April 2018, the State Bank of Pakistan had prohibited the purchase and sale of cryptocurrencies in the country. Despite the ban, many people in Pakistan have invested in Bitcoin and other cryptocurrencies, the report said quoting Daily Pakistan.Meanwhile, keeping in mind the huge number of Pakistani nationals investing in cryptocurrencies, the country’s policy advisory board the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has said that Pakistan has the potential to raise billions of dollars through its crypto assets.The country could use the crypto assets to boost its reserves, Bitcoin reported quoting a report on the FPCCI paper in The Business Recorder.In 2020-21, Pakistan saw a 711 percent increase in cryptocurrency value at around $20 billion.After India and Vietnam, Pakistan ranks third in the Global Crypto Adoption Index in 2020-21.According to the FPCCI paper, for Pakistan to channelise the accumulated virtual currency assets, the country needs to develop a regulatory framework and national cryptocurrency strategy. The framework will help safeguard the economic interests of the country and minimise the risks in the new system.Even though digital coins may not gain the status of a legal tender soon, cryptocurrencies can be formalised as an asset class.The paper said crypto-linked exchange-traded funds (ETFs) have the potential to attract both domestic and foreign portfolio investments and could help the country’s stock exchange to regain its position among emerging economies.The report warned that a failure to adopt cryptos could lead to investors moving their assets to other countries.Read Also | (Edited by : Thomas Abraham)

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