Like India, Pakistan’s central financial authorities are yet to come up with a concrete set of rules for the trading and exchange of crypto tokens. As the government looks to regulate the industry, Pakistan continues to be one of the top counties for the adoption of blockchain technology. Rain Financial, a trading platform for cryptocurrencies based in Bahrain has contacted the local regulators to persuade issuance of a legal framework for cryptocurrency trading in Pakistan.
Zeeshan Ahmed, country manager of Rain Financial has told local media that digital currencies exist in a regulatory “no man’s land”. He added that no law had declared cryptocurrencies illegal but translation onto law is another thing. However, it is important to mention that former governor of state bank Raza Baqir has warned of greater risks in crypto trading compared with its benefits. Earlier, State Bank had also advised the public to refrain from it. Zeeshan Ahmed told that negotiations were taking place, and expressed the hope that authorities would understand its benefits.
Although the central bank does not recognize cryptocurrencies as legal, Pakistan is among the top-ranking countries on the Global Crypto Adoption Index, with more than $604 million being booked by Pakistanis in 2021. Ahmed said that they believe in regularized and licensed platforms whereas un-regularized markets like Pakistan face capital flight and risks. He told that the evolution of cryptocurrencies is a consequential event just like industrial revolution. He was hopeful that Pakistan would be a high volume, low transaction market for Rain Financial, expecting the numbers to go up four times after they get a legal cover from authorities. Rain Financial, that was incorporated in Bahrain in 2017, had received its license in 2019.