On Wednesday, a government minister supervised the new policy of the crypto government told Reuters; Pakistan’s Khyber Pakhtunkhwa province intends to develop two pilot mining “mining farms” to capitalize on the bullish global crypto-monetary market.
The annunciation comes as cryptocurrencies are gaining mainstream acceptance by giving their asset management customers access to bitcoin funds, as Bitcoin’s price reached record levels like investors like Elon Musk pour funds into it and the first large United States bank, Morgan Stanley.
Crypto mining farms include large investments in computer data centers requiring large quantities of electricity.
As neighboring India plans to prohibit cryptocurrencies altogether, Pakistan has established a federal committee to formulate new crypto politics. There is also a cost determination of the mining project.
“We’re already approached to invest in Khyber Pakhtunkhwa and want people to make money from this, and the province will earn money from it,” said Zia Ullah Bangash, Province Science and Engineering Adviser.
The mining and cryptocurrencies trading in the legal grey region of Pakistan currently do exist, but, before it could officially be opened to investors, the federal authorities will have to pave the way for the legalization of this industry.
The State Bank of Pakistan reported in 2018 that cryptocurrencies had not been legal offers and that the regulator did not permit anyone in the country to deal with them. Pakistan is currently on the global Task Force of Financial Action, and one of the areas in which Islamabad has been requested to better regulate global money launderer is cryptocurrencies.
Crystal in the country was banned by the State Bank of Pakistan in 2018, announcing that Bitcoin (BTC) cryptocurrencies were not legally tendered. Although Pakistan residents were officially banned for years, they did not cease to invest in cryptography. “It’s just our government that isn’t involved now, people from across Pakistan are working, either mining or trading in cryptocurrencies, and they earn revenue from this,” Bangash said.
However, mining and cryptocurrency businesses are thriving in Pakistan, and web analytics company Similar Web reports that applications like Binance and Coinbase are among the most popular downloads in the country. “It’s just our regime, people from around Pakistan, either mining or trading in a cryptocurrency, that isn’t involved at the moment and that earns an income from it,” Bangash said. “We hope to bring this to the level of government so we can control things and avoid online fraud or other scams.”
Local crypto advocate and influence leader Waqar Zaka had a major role in setting up the committee, saying it was he who persuaded the local government to launch the initiative. The committee also discussed “appropriate steps to regulate, legitimize and legislate the law.” “I am grateful for the cooperation of Waqar Zaka and support for the KP Government,” said Bangash.
Reported By: Ehtisham