SECP decided to develop new laws related to digital assets and the status of cyber currency. The innovation is expected to impact the financial sector of Pakistan.
The briefing in this regard was held at the head office of SECP. The meeting was led by the Additional Director, Primary Market Approvals, Securities Market Division Najia Ubaid, and Director, Information System and Technology Abdul Rahim.
There was a need to develop a policy and regulatory response to digital assets due to the need for innovation that may impact the financial sector. The challenge is that digital assets do not sit within the current regulatory framework.
As for the cyber currency including Bitcoin, SBP has already banned the trade of this type of currency where many other countries are valuing it and developing frameworks to monitor it.
The SECP has started consultations to devise policies and regulations regarding the digital tokens /assets and utility tokens.
Abdul Rahim said:
The benefits of blockchain, are that it saves transaction time from days to near-instantaneous, removes cost overheads and cost intermediaries, reduces the risk of tampering, fraud, and cybercrime,
As per the source, Najia Ubaid said:
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),