PAKISTAN has a large and growing crypto user base with estimate ranging from 15-20 million users.

It has gained ground as an alternate investment avenue in Pakistan despite years of regulatory uncertainty. On the other side its growing adoption presents serious challenges for Pakistan’s efforts to counter terror financing and money laundering. In this regard, Government has taken action under anti-money laundering and counter terror financing regime and declared financial transparency as a national priority.

Under international scrutiny, the nation has spent years bolstering its anti-money laundering and counterterrorism funding system. However, new hazards brought about by crypto currencies were not anticipated by previous systems. Because they are decentralized and international, there is little control over the flow of money. The core problem lies in identification. Crypto transactions are recorded on public blockchains, but the individuals behind digital wallets remain largely hidden. Without strong identity checks at exchanges and trading........

© Pakistan Observer