Islamabad, Federal Government is going to introduce Electronic Money Institutions (EMIs) regulations to regulate digital currencies. This initiative of the federal government is part of its action plan relating to Financial Action Task Force (FATF).
The finance ministry sources said that the regulations have been prepared so that they can monitor and regulate the digital currency in Pakistan. The ceremony will be managed in State Bank of Pakistan, Islamabad office and the finance minister, Asad Umar will be the chief guest of the ceremony. Governor State Bank of Pakistan, Tariq Bajwa, Finance Secretary, Younis Dhaga and other officials will also attend this ceremony.
With the introduction of these regulations, digital or cryptocurrencies will be regularized according to the standard rules and regulations for the financial institutions. It is also admitted that criminals and terrorists may use this virtual currency.
The sources has revealed that FATF warned the terrorists to use digital currencies as the effective tools for money laundering of their funds and the reports confirms that the cryptocurrency provides opportunities for illegal activities. FATF warned against use of cryptocurrencies for illegal activities including tax evasion, terror financing and money laundering. FATF has given the recommendations for combating the cryptocurrencies, which would pose as challenge for future governments and effective measures were needed to implement them.
Now Pakistani is taking the initiatives to implement on these recommendations and it is introducing electronic money regulations and EMIs will be issued licenses by government. The federal government has the authority to suspend or cancel licenses of EMIs deviating from set rules and regulations.