- “Not regulating crypto presents a major risk,” warns SAPM.
- The world rate of using cryptography for illicit activities is 0.024%: SAQIB.
- PM assistance clarifies the government will not spend money to buy bitcoins.
The special assistant of the first Prime Minister (SAPM) on the blockchain and the Crypto Bilal Bin Saqib on Sunday said that the government was formulating a regulatory framework for digital money aligned with the Policy Policy of the Financial Action Working Group (GAFA), a global organization which fights against terrorist funding and money laundering.
Speaking on Geo News The “Naya Pakistan” program, SAQIB, who is also Managing Director (CEO) of Pakistan Crypto Council (CCP), said the Council will describe the regulatory framework for cryptocurrencies in the country.
Crypto has many economic advantages, said the SAPM and warned: “Do not regulate the crypto presents a major risk”.
Globally, the rate of use of cryptography for illicit activities is 0.024% while the cash rate for such activities is 2% to 4%, he added.
Likewise, the use of cryptocurrency in money laundering was significantly lower than that of money, said the PM assistant. He argued that there was a significant gap between decision -makers and young people warned in technology.
He added that by regulating cryptocurrency, the government could also move to AI data centers.
“We do not spend money to buy bitcoins; instead, we will use the Bitcoins seized by the government,” he added. The PM assistant said they would present a “Bitcoin national portfolio” and would put the seized bitcoins.
People wanted to support Pakistan, he said, adding: “Donations around the world will come to the wallet.”
Bitcoin extraction in the country is said to be carried out through a public-private partnership, said SAQIB, noting that the share of the Bitcoins gained government would be credited with the same portfolio.
Speaking on occasion, the PM assistant said that at least six countries had contacted the government in this regard.
“We want to convert expenses into assets,” said Saqib.
Bitcoin exploitation takes place in Ethiopia, Bhutan and the United States, he said.
The Prime Minister’s help that the government would only provide electricity to investors, adding that the government had not set any prices for the electricity used in the operation of Bitcoin.
“The way this partnership is advancing will be decided on a case-by-case basis,” he added.
It is relevant to mention here that the government announced last month the allocation of 2,000 megawatts (MW) of electricity in the first phase of a national initiative to fuel the extraction of Bitcoin and the data centers of artificial intelligence (IA).
In a press release, the Minister of Finance, Muhammad Aurangzeb, said that the country’s underused electricity production capacity was now reused in a high-value digital asset.