Efforts of the celebrity Waqar Zaka have finally borne fruit as the Securities and Exchange Commission of Pakistan (SECP) decided to issue a regulatory framework for the regulation of the digital and virtual assets, including Cryptocurrency.
As per the details, the framework has been issued to control the irrelevant use of virtual currencies in Pakistan.
The SECP has drafted a document on the regulation of Digital Asset Trading Platforms in Pakistan.
The shared commonalities between digital assets include:
- Digital/Cryptocurrencies; digital tokens/assets; Utility Tokens
- Security Tokens – either backed by real assets or cryptographic Distributed Ledger Technology
According to SECP, virtual assets and Crypto Assets are the beginning of the new era of Digital Finance and demand innovative regulatory measures around the world.
The problem is significant as even though the full scale of misuse of virtual currencies is unknown, its market value has been reported to exceed EUR 7 billion worldwide, SECP said.
The SECP mentioned that the development of a regulatory response to Digital Assets in Pakistan is needed, driven by the following:
- Digital assets are a form of innovation that may impact the financial sector of the country
- Digital assets do not fit within the current regulatory framework
- Digital assets may create conditions for regulatory arbitrage while posing risks;
- Increasing interest, investment, and participation in Digital Assets.
What is the role of Waqar Zaka in it?
Waqar Zaka was probably the only person who diverted attention towards the development of cryptocurrency in Pakistan. His countless efforts cannot be ignored. He was the one who appealed to the court to make cryptocurrency legal. He was the one who used the power of social media to raise voice for the bitcoin business.