Digital Currency Player-RAIN Calls for Cryptocurrency Regularization
The international players have demanded that government authorities finalize a plan of cryptocurrency regularization to check capital flight.
One of the key international players in the field – RAIN, the first licensed crypto-asset company, has suggested that the government tax crypto assets and formulate regulations in this regard.
“No country or individual can remain away from the upcoming digital trends and developments,” Aatiqa Lateef, director of Public Policy RAIN said.
Briefing media on the importance of crypto assets in any modern economy, she said that relevant officials from 44 developing and underdeveloped countries are meeting in El Salvador over cryptocurrency asset regulations.
“Cryptocurrency or crypto-asset as its called differently in various jurisdictions, have been largely adopted by advanced economies,” Mst Lateef said.
“But the El Salvador meeting is to discuss the best regulatory framework for less advanced economies,” she added.
Zeeshan Ahmed, GM Pakistan, RAIN, said that there was a potential of multimillion dollars in revenue if the government imposes a tax on crypto assets.
Crypto Assets Trade-in Grey Areas
“The West has acknowledged that crypto-assets trading continues in the grey areas, likewise it’s happening in Pakistan,” Mr. Ahmed said.
“We suggest Gulf countries have recognized it Pakistan too should tax and regulate crypto assets, ” he added.
They informed the media that while major businesses including Starbucks and Emirate airlines have started to receive payments in Cryptocurrencies, India has imposed a 31 percent tax on profit over it.
“This was the crypto exchanges have started to get registered with tax collection body in India,” Mr. Ahmed said, and the formulation of laws continues.
RAIN officials said local challenges are primarily around building capacity and understanding crypto assets.
Pakistan ranks in the third slot globally in crypto subscription and usage was growing rapidly.
Capacity Building is a Big Challenge for Cryptocurrency Regularization
In their meeting with the officials of the Finance Ministry, the RAIN executives have said the biggest challenge is the initial capacity building needed for regulators.
It was because Crypto is a very new arena and without the requisite due diligence and technical guidance.
They informed the ministry that Pakistanis were vulnerable to fraud while trading crypto assets through irregular means.
The people are trading over 8000 Cryptocurrencies over the dark web – a majority of these are fraudulent and do not provide any protection to investors, therefore it needs recognition.
Trading Bitcoins for Beginners: A Comprehensive Guide
Moreover, they suggested that to counter this challenge ‘RAIN’ will share its experience as the first license holder to operate a crypto brokerage and a crypto exchange in the Gulf region.
They operate over 80 cryptocurrencies and fulfill all regulatory requirements.
Meanwhile, the Sindh High Court has directed the Ministry of Law and the Finance Ministry to finalize the matter. Earlier the SECP and the State Bank have decided to disown cryptocurrency or crypto assets on the ground that it could invite the ire of the IMF and the FATF.
