Bitcoin is currently banned by the State Bank of Pakistan and it’s illegal for businesses, banks and other entities to trade bitcoin in the jurisdiction of Islamic Republic of Pakistan.
But Pakistan is the world’s fourth-largest country by population, and about 50 percent of the population is between the ages of 15 and 40, and only about 4 percent is over the age of 65. So, bitcoin adoption in Pakistan is increasing at a fast pace, even though it's banned by the State Bank of Pakistan. Many freelancers working in tech industries from Pakistan get paid in bitcoin. Which brings more liquidity in the country.
Bitcoin is being traded heavily on peer-to-peer exchanges like Paxful and LocalBitcoins in Pakistan. Other chunks of trades are happening in social media groups and online communities where freelancers sell their bitcoin in exchange for cash-to-money exchangers who later sell it on a 5 percent to 10 percent premium.
Bitcoin is currently not accepted anywhere in Pakistan as a medium of exchange. There is not a single regulated, centralized bitcoin exchange operating in Pakistan where people can buy, sell or trade bitcoin. So it’s a bit difficult and risky for freelancers to convert it into cash.
People promoted many scam projects leading up to and during the 2017 bitcoin bull run, which became the biggest factor in the country’s bitcoin and cryptocurrency ban. Scam projects like OneCoin have been sold to people in Pakistan as investment opportunities to make quick profits in short periods. The people behind those projects were mostly Pakistani-British nationals who funded the projects and scammed millions from those who invested their money, only to find out later that the company ceased to exist.
The Provincial Assembly (MPA) of Khyber Pakhtunkhwa, one of the four provinces in the country, made the official announcement after holding discussions in the midst of a nationwide dialogue about if the federal government should legalize crypto assets and take it out from the limbo.
Dr. Sumera Shams, a member of the Provincial Assembly, said in a tweet that he expects Pakistan could progress towards digitalization “to compete for the world.”
He also praised the assistance of Zia Ullah Bangash – Advisor to Chief Minister of Khyber Pakhtunkhwa on Science & Technology and Information Technology – and Fawad Hussain, Federal Minister for Science & Technology Government of Pakistan, in the writing of the draft resolution.
Although there is no ban on crypto-related activities in Pakistan, the State Bank of Pakistan has published warnings in 2018 that advise people and businesses to exercise caution on dealing with cryptocurrencies because of its “extreme volatility.”
Bitcoin is currently banned by the State Bank of Pakistan and it’s illegal for businesses, banks and other entities to trade bitcoin in the jurisdiction of Islamic Republic of Pakistan.
But Pakistan is the world’s fourth-largest country by population, and about 50 percent of the population is between the ages of 15 and 40, and only about 4 percent is over the age of 65. So, bitcoin adoption in Pakistan is increasing at a fast pace, even though it's banned by the State Bank of Pakistan. Many freelancers working in tech industries from Pakistan get paid in bitcoin. Which brings more liquidity in the country.
Bitcoin is being traded heavily on peer-to-peer exchanges like Paxful and LocalBitcoins in Pakistan. Other chunks of trades are happening in social media groups and online communities where freelancers sell their bitcoin in exchange for cash-to-money exchangers who later sell it on a 5 percent to 10 percent premium.
Bitcoin is currently not accepted anywhere in Pakistan as a medium of exchange. There is not a single regulated, centralized bitcoin exchange operating in Pakistan where people can buy, sell or trade bitcoin. So it’s a bit difficult and risky for freelancers to convert it into cash.
People promoted many scam projects leading up to and during the 2017 bitcoin bull run, which became the biggest factor in the country’s bitcoin and cryptocurrency ban. Scam projects like OneCoin have been sold to people in Pakistan as investment opportunities to make quick profits in short periods. The people behind those projects were mostly Pakistani-British nationals who funded the projects and scammed millions from those who invested their money, only to find out later that the company ceased to exist.
The Provincial Assembly (MPA) of Khyber Pakhtunkhwa, one of the four provinces in the country, made the official announcement after holding discussions in the midst of a nationwide dialogue about if the federal government should legalize crypto assets and take it out from the limbo.
Dr. Sumera Shams, a member of the Provincial Assembly, said in a tweet that he expects Pakistan could progress towards digitalization “to compete for the world.”
He also praised the assistance of Zia Ullah Bangash – Advisor to Chief Minister of Khyber Pakhtunkhwa on Science & Technology and Information Technology – and Fawad Hussain, Federal Minister for Science & Technology Government of Pakistan, in the writing of the draft resolution.
Although there is no ban on crypto-related activities in Pakistan, the State Bank of Pakistan has published warnings in 2018 that advise people and businesses to exercise caution on dealing with cryptocurrencies because of its “extreme volatility.”