LAHORE MIRROR — Pakistan has become the world’s third-largest cryptocurrency market, with around 40 million Pakistanis holding crypto accounts, the chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), Bilal Bin Saqib, told a Senate committee on Monday.
Briefing the Senate Standing Committee on Cabinet Secretariat, Mr Bin Saqib said virtual asset technology was gaining traction globally, with governments including those of Dubai and Thailand embracing the sector.
He said the State Bank of Pakistan had kept digital assets under restrictions for around eight years, arguing that banning technology amounted to “freezing yourself”.
Bin Saqib said PVARA had issued no-objection certificates (NOCs) to two international virtual asset companies and directed businesses operating in the sector to register by September 5, warning that enforcement action would begin against those failing to comply.
He said Pakistan had established its virtual asset regulatory framework within five months, describing it as the fastest such regime to be developed globally.
According to the PVARA chairman, Pakistan’s virtual asset market was worth around $250 billion, while between $10bn and $20bn in virtual asset-related funds were held in the country. He said the sector was primarily being used by people under the age of 40.
He noted that India had imposed a 30 per cent tax on virtual assets, but said Pakistan did not intend to adopt a similar approach.
“We are considering how much tax should be imposed on virtual assets,” Mr Bin Saqib said, warning that excessive taxation could drive investors offshore.
Mr Bin Saqib said PVARA was now recruiting permanent staff and had so far used only eight per cent of its government budget.
He said Pakistan received around $41bn in foreign exchange through remittances and estimated that reducing transaction costs could bring an additional $2bn into the country.
