Pakistan is accelerating its embrace of blockchain technology and cryptocurrencies, demonstrated by recent government initiatives and the appointment of Bilal Bin Saqib as Special Assistant to Prime Minister Shehbaz Sharif on Blockchain and Crypto.
Saqib, CEO of the Pakistan Crypto Council, assumes the role immediately, operating without salary or official benefits. This appointment, formalized under Rule 4(6) of the Rules of Business, 1973, highlights the government’s growing interest in leveraging digital assets.
Key Developments in Pakistan’s Crypto Landscape:
- Appointment of Special Assistant: Bilal Bin Saqib will advise the Prime Minister on blockchain and crypto-related matters.
- Bitcoin Mining Initiatives: The government has allocated 2,000 megawatts of surplus electricity for Bitcoin mining and artificial intelligence centers. This move aims to capitalize on the potential of these energy-intensive industries.
- Regulatory Framework Development: The Ministry of Finance has endorsed the creation of the Pakistan Digital Assets Authority (PDAA). This body will oversee the licensing, regulation, and supervision of crypto exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance (DeFi) applications.
Bilal Bin Saqib: A Profile
Bilal Bin Saqib is a graduate of the London School of Economics and was awarded the title of Member of the Most Excellent Order of the British Empire (MBE) by King Charles III. He currently leads the Pakistan Crypto Council, where he previously appointed former Binance CEO Changpeng Zhao as an advisor. Saqib has also been recognized as a Forbes 30 Under 30 honoree.
In his role as Special Assistant, Saqib will be responsible for several key tasks:
- Drafting Financial Action Task Force (FATF)-compliant crypto regulations.
- Launching state-backed Bitcoin mining projects.
- Overseeing blockchain integration in governance, land records, and finance.
Pakistan’s Broader Crypto Strategy:
These developments are part of a larger effort by Pakistan to attract investment and strengthen its presence in the digital asset market. The government’s actions align with a global trend of increasing interest and adoption of cryptocurrencies and blockchain technology.
Partnerships: World Liberty Financial, backed by Donald Trump, has signed a Letter of Intent with the Pakistan Crypto Council to foster crypto adoption within the country.
Regulatory Proposals: The Federal Investigation Agency (FIA) has proposed a compliance-focused regulatory framework for digital assets, designed to align with FATF guidelines. FIA Director Sumera Azam has described this framework as a ‘paradigm shift’ in Pakistan’s approach to digital finance, aiming to balance technological advancement with national security.
The Pakistan Digital Assets Authority (PDAA): Key Focus Areas
The establishment of the PDAA marks a significant step towards creating a regulated and secure environment for digital assets in Pakistan. The authority’s responsibilities will include:
- Licensing: Issuing licenses to crypto exchanges, custodians, and other digital asset service providers.
- Regulation: Developing and enforcing rules governing the operation of these entities.
- Supervision: Monitoring the activities of digital asset businesses to ensure compliance with regulations and protect investors.
Challenges and Opportunities
While Pakistan’s commitment to crypto is evident, challenges remain. These include educating the public about the risks and benefits of cryptocurrencies, establishing robust cybersecurity measures to protect digital assets, and addressing concerns related to money laundering and terrorist financing.
However, the opportunities are significant. By creating a favorable regulatory environment, Pakistan can attract foreign investment, promote innovation, and create new jobs in the digital asset sector. Furthermore, blockchain technology can be used to improve efficiency and transparency in various sectors, including government, finance, and supply chain management.
In conclusion, Pakistan’s recent initiatives demonstrate a clear intent to become a key player in the global crypto landscape. The appointment of Bilal Bin Saqib, the allocation of resources for Bitcoin mining, and the establishment of the PDAA all signal a proactive approach towards embracing the potential of blockchain technology and cryptocurrencies.