Pakistan is planning to regulate crypto business

The government of Pakistan has recently created regulations for crypto business. The federal government has settled on the new Electronic Money Institutions (EMIs) regulations to follow recommendations of the Financial Action Task Force, in an attempt to regulate previously uncontrolled sector and to combat illicit uses of modern technologies.

The State Bank of Pakistan in its statement pointed out that the regulations were developed with an intention to support innovation among payment service firms, and in an effort to promote wider financial inclusion within the country.

Companies registering as EMIs will be required to follow a range of compliance measures. Among other things, they will have to comply with capital requirements, endure the examination of executives, undertake protection of users’ funds and implement customer due diligence, including storing personal details in particular name, ID card number, address and phone number.

The Financial Action Task Force, a global body responsible for monitoring and preventing money laundering, has previously warned on multiple occasions that cryptocurrency creates a risk for money laundering and terrorist financing. The measures announced by the government of Pakistan are created to limit the above-mentioned risks, while developing a certain legal framework, which will allow cryptocurrency businesses to operate in Pakistan.

FATF is planning to publish complete rules for international cryptocurrency regulations by the end of summer 2019.

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