In order to regulate digital currencies, the federal government has introduced new Electronic Money Institutions (EMIs) regulations. Asad Umar, The Finance Minister of Pakistan in a ceremony at the Islamabad office of the State Bank of Pakistan today, announced these new regulations for cryptocurrencies.
These regulations will help to tackle crimes like money laundering and terrorist financing and will also help to regulate digital currency throughout the country. EMIs are launched on the recommendation of the Financial Action Task Force (FATF), who has warned the government about the use of digital currency by terror organizations.
The FATF report also says that terrorist organizations might use digital currencies as a tool to launder money for their terrorist activities. The report also admits that cryptocurrency provides an opportunity for illegal activities. Moreover, the task force has also warned regarding illegal activities including terror financing, tax evasion, and money laundering.
Pakistan government while implementing on these recommendations, has introduced Electronic Money Regulations based on which the EMIs will be issued licenses by the government. The government will have the authority to suspend the licenses of the Electronic Media Institutions if they deviate from the rules and regulations set by the authorities.
Meanwhile, the Securities and Exchange Commission of Pakistan (SECP) has also started legal proceedings against the companies who are offering cryptocurrencies and fraud schemes.