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Economic collapse pushes Pakistan to legalize crypto mining

Economic collapse pushes Pakistan to legalize crypto mining

The Khyber Pakhtunkhwa State Assembly recently passed a resolution demanding the federal government to legalize cryptocurrencies and crypto mining. The Adviser at KP Assembly bought this to notice through his Twitter channel informing about country’s latest move.

Pakistan houses 212 million people resulting in the fifth populous country in the world. It is undergoing a severe economic crisis, according to a World Bank’s report. Moreover, there is a considerate decline in the economic output of the country. This led to the legislative body paving the way for new opportunities through the legalization of cryptocurrencies.

Waqar Zaka, the Chairman of Technology Movement Pakistan, also expressed his excitement on achieving this milestone. In a series of tweet thread, he mentioned about the efforts to legalize cryptocurrencies in Pakistan. He self-acclaimed to reach out to various provinces including Punjab and Baluchistan in a quest to regulate cryptocurrencies. Moreover, the crypto influencer is continuously fighting for crypto legalization in the country.

Waqar further informed about the installation of a new mining farm. Although a court case is pending against him, the crypto enthusiast manages to install the most prominent crypto mining farm with the help of Khyber Pakhtunkhwa government.

Illegal in Pakistan , Court case delayed , but I manage to install Pakistan’s first and biggest crypto mining Farm in KPK with the help of KPK Government using this as research based project

Waqar Zaka, Crypto influencer, Pakistan

Crypto Regulations in Pakistan

Pakistan is one such country where crypto regulations are stringent. Bitcoin and other cryptocurrencies are banned, therefore illegal in Pakistan. The usage of cryptocurrencies can land up a person in jail if found guilty. Those found owning or trading in cryptocurrencies can be penalized due to strict governmental policies. In January 2020, the Pakistani police arrested two individuals running a crypto mining farm in a remote area for mining bitcoin. Moreover, the suspects were involved in money laundering through cryptocurrencies.

However, the above resolution demands a change in the current scenario. Mining is not quite possible without the regulatory support of the government. It involves acquiring equipment, cheap labour and cheap electricity to run processes smoothly and book profits. However, without proper regulatory purview, it can lead to more losses than profits.

The Khyber Pakhtunkhwa is a mountainous region in the northern state of Pakistan. It seems most viable in respect to regulatory permissions, cheap electricity and labour to set up a profitable crypto mining farm. Conclusively, Waqar’s efforts have led to kickstarting a wave of crypto adoption in Pakistan.

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Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.