SECP Declares Its Statement On Crypto currencies


The Crypto currencies like bit coin is globally adopted in various countries and used for trading and business purposes. In Pakistan the cyber currency is not allowed and people engaged with international business and online work are in favor that the cryptocurrencies should not be banned and these virtual payment methods under various cyber platforms allows them for easy and comfortable trading locally and internationally.
The Securities and Exchange Commission of Pakistan SECP also accepts the fact that the crypto currency including bitcoin is allowed in various countries, but it is still banned in Pkaitan by SECP and State Bank of Pakistan.
Recently, a meeting held at the SECP Headquarters where the Director, Information System and Technology Abdul Rahim and Additional Director, Primary Market Approvals, Securities Market Division Najia Ubaid attended the briefing.
As per details came from the meeting it was acknowledged that the Security token, digital assets, and crypto assets are currently functional in various countries like Japan, Thailand, Israel, Canada, Singapore, Hong Kong, USA, Malaysia, and Abu Dhabi.
The officials stated that the cyber currency including bitcoin is banned by SBP and SECP in Pakistan but in various developed and stable economies of the world has recognized it. The officials of the SECP further explained that the position paper does not cope with this issue because there is no scope in the SECP for the digital/cryptocurrencies, so the SECP is now ready for consultations to regulate the digital token, assets and utilities tokens.
The consultation for the issuance of digital currency will be made under SECP officials, concerned people, and the experts. The SECP has sent concept paper for digital assets to the banks and State Bank of Pakistan SBP as well.
According to the official of the SECP the is considered as a blockchain platform among the various digital products, but currently it is banned and prohibited in Pakistan.
The SECP official Najia Ubaid Said:
Initial Public Offering IPOs are backed by investment banks that list the shares on the stock exchange, allowing you to buy, sell and trade, whereas the SECP envisages that an initial coin offering (ICO) is offered as a cryptocurrency rather than as a stock, and another such product was the Security Tokens (STO).”
SECP claimed that ICOs are more risky, these are not a business but an idea already generating revenue in the country. So the SECP want to make an overview and evaluation for the digital assets, distributor ledger and other emerging technologies and shows an interest to take part in this procedure. In Pakistan it is the need of hour to make a policy and regulatory response to the digital assets that can be proved to be better for the development and betterment of the financial sector of the country but digital assets do not fulfill the requirements and policies of the present regulatory infrastructure of the country.

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