Cryptocurrencies are digital currencies that appear to be the future of currencies. However, many governments around the world are not really satisfied with its progress. According to an Australian report, 60% of financial crimes in Australia have a link to cryptocurrencies. This is why many governments do not support the use of these currencies. However, not all governments are against it (not openly anyway). According to recent reports, Pakistan will support crypto mining by establishing crypto mining companies.
Pakistan’s Khyber Pakhtunkhwa Province (KP) established a federal committee to formulate new cryptocurrency policies, including government-supported cryptocurrency mining. According to government officials, as part of the new policy, the KP Encryption Advisory Committee has decided to build two hydropower encryption pilot “mining farms” (crypto mining companies). The committee held its first meeting on March 17th to consult with all stakeholders and experts on this initiative.
According to reports, the establishment of the KP Encryption Advisory Committee is to review and discuss “necessary steps for regulation and legalization, as well as necessary measures”. A local cryptocurrency advocate and influencer, Waqar Zaka, apparently plays an important role in the establishment of the committee and is to persuade the local government. However, this initiative is coming directly from the Pakistani government.
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In 2018, the National Bank of Pakistan banned the country from using cryptocurrencies. Despite this, Pakistani residents are clearly continuing to invest in cryptocurrencies.
According to local reports, KP Province has been urging the central government to legalize cryptocurrency until a resolution is passed in December 2020, requiring immediate legislative action in the federal government. It is now the first of the four provinces of Pakistan to establish an Encryption and Mining Advisory Committee.
India to ban cryptocurrencies
In recent times, India has been doing a lot of banning. According to reports, its new law will put a ban on cryptocurrencies. Furthermore, the country will severely punish violators of this law. This includes holders and miners. According to government officials, the Indian ban on crypto will be one of the toughest in the world.
It will not only punish, but it will also criminalize violators of this law. Nevertheless, it will give pre-existing holders of cryptocurrencies some time to sell off their cryptos. Holders will have no more than six months to liquidate their cryptocurrencies. As of now, this bill is not yet a law. However, it is most likely to pass seamlessly because the Indian Prime Minister, Narendra Modi, has a majority of seats in the parliament.