Victor Ugochukwu · Dec 14, 2020 . 5min read
Pakistan’s SECP contemplates on developing crypto regulatory framework
The Securities and Exchange Commission of Pakistan (SECP) is developing a framework for regulating the crypto sector in Pakistan.
By Komal Joshi · Nov 16, 2020 . 5min read
Pakistani SECP is working on developing a new legal framework for regulating the crypto sector. The Securities Exchange Commission of Pakistan (SECP) revealed this via a consultation paper. The paper describes significant concepts for developing the digital financial market in Pakistan. Furthermore, it reviews the current regulatory frameworks produced by other global jurisdictions.
The announcement arrives as the Pakistani authorities are planning to join a new age of digital finance. SECP acknowledged the developing business valuation and landscape of cryptocurrencies. It adds that digital currencies introduce innovation to the financial sector. However, the potentials can be availed with framework in line regulating the market while still making sure that the investors who are participating do not face any risk.
SECP to concentrate on cryptographic issues.
The SECP notes in the paper that it intends to concentrate on various cryptographic issues. These involve the fundamental definition, concepts and, internal operations of digital assets, the ways that regulators across the globe have utilized in dealing with the emerging asset class. It also involves the tools that SECP would use to manage cryptography in the country and the way forward to develop a sturdy regulatory framework.
Moreover, the paper attempts to offer policy suggestions to partners and shareholders in the Pakistani crypto view. The regulator further elucidates that the paper concentrates particularly on non-governmental or non-bank assigned crypto assets. However, it is currently not focusing on CBDCs (Central Bank Digital Currencies).
According to the paper, security tokens have various benefits. Nevertheless, the only characteristic that reaches out is the capability to fractionate any asset. This feature assists in minimizing investment bars for retail investors. Besides, the regulator appends that security tokens has a significant level of transparency, increased liquidity, improved clearing and settlement mechanisms and, diversity of automation tools. The SECP says that it will continuously communicate with market participants and embrace feedback from the crypto industry to produce an efficient regulatory regime for the sector.
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