PAKISTAN Regulates Crypto, New License for Crypto Firms
Pakistan confirmed to bring Cryptocurrency regulation. The Nation’s federal government reports with Concerns and recommendation from the Financial Action Task Force (FATF).
The endorsement brings the non-licensed firms at a drawback. The firms have to meet certain requirements marks so as to be registered and licensed by the government. The firms that do not follow the same and continue to function have to face a permanent suspension or even a calculation of there license.
Companies will have to go through a variety of process and check-ups to meet the requirements and hence being registered with the government.
The various criteria are as follows.
- Companies will have to meet certain capital requirements, undergo various security of the executive’s.
- The company should have measures to protect the funds provided by the user and thus avoid loss of funds.
- The company must take care of customer diligence with storing their personal Data and details which may include ID proofs with Address and also users Phone number.
So you all must be thinking why such strict steps are taken by this country. Here’s the answer, they are taking these measures to improve this sector and also to monitor and regulate the sector and to eradicate and prevent the misuse of cryptocurrency.
The sources were quoted as saying in the report.
“These regulations will help to combat money laundering and terrorism financing while it will also help the regulation of digital currency throughout the country.”
So for the enforcement of the new laws, a ceremony has been organised at the STATE BANK OF PAKISTAN, ISLAMABAD.
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FATF, a global money-laundering watchdog has already warned that cryptocurrency poses a great risk for the evil doings like terror fundings as highlighted by the Firms. To overcome the threats the firm is expected to publish some regulation regarding
The notice not includes only the cryptocurrency firms but also the digital wallet for cryptocurrency and also companies offering financial services for initial coin offerings (ICOs) will also be included under the new rules.
The FATF firm had also requested the Country to work in coordination so that they all can together stop the misuse of cryptocurrency and other virtual assets for the crime and terrorism purposes.
It also mentioned that the country has been reportedly caught doing terror fundings and getting involved in them. The Organisation FATF will continue to work with the country and also fight such illegal activities.
