As reported by Cointelegraph on November 12th, the Securities and Exchange Commission of Pakistan (SECP), has published a discussion paper on regulating digital assets. Issued on Nov. 6, the paper describes major concepts for the growing digital finance market in Pakistan.
Pakistan’s government is working on a framework for regulating cryptocurrencies such as Bitcoin (BTC).
The SECP states that digital assets also known as virtual assets, and crypto assets are the “start of a new era of digital finance.” According to the regulator, the new era of digital finance “could only be possible by initiation of a new era that re-invents regulatory regime or measures as they are known to the regulators globally today.”
The SECP emphasized that the consultation paper focuses particularly on private crypto assets and does not include remarks on a central bank digital currency (CBDC).
According to the regulator, one of the key benefits of security tokens is the ability to fractionalize each asset, which enables benefits like lowering barriers for investment by retail investors.
The SECP will also continue to engage with market players and welcome industry feedback in developing a regulatory framework for crypto.
Last year, Pakistan was planning to introduce new digital currency regulations for electronic money institutions.
In April 2019, Pakistan’s central bank announced plans to issue a CBDC by 2025.