Pakistan Ministry of Finance discusses imposing a tax on cryptocurrencies

The Ministry of Finance of Pakistan discussed with industry participants the possibilities of regulating digital assets and imposing a tax on cryptocurrencies.

Zeeshan Ahmed, CEO of the Bahrain trading platform Rain, attended the meeting with the Pakistani Ministry of Finance. In 2019, this exchange became the first platform in the Middle East to receive a regulatory license. Ahmed thinksthat the development of digital assets in Pakistan is hampered by the insufficient level of knowledge of the population about the cryptocurrency market and the lack of clear regulatory rules for its regulation. He suggested that the government introduce a capital gains tax on cryptocurrency traders. According to Ahmed’s calculations, this will add about $90 million to the state treasury. He cited India as an example, which raised the tax on cryptocurrency trading to 30%.

“The West recognizes that crypto assets are still traded in gray areas, just like they are traded in Pakistan. Europe and the Gulf countries are discussing and implementing bills to tax crypto assets, so Pakistan should also look into this issue,” said the head of Rain.

The Pakistani Ministry of Finance agreed that the local population remains vulnerable to cryptocurrency scams and investors cannot rely on legal protection in case of loss of their funds. The agency expressed its readiness to cooperate with Rain specialists in the development of industry regulation. Aatiqa Lateef, Head of Public Relations for Rain, noted that no country can stay away from digital trends and the latest developments, and cryptocurrencies play an important role in any modern economy.

Recall that earlier the Central Bank of Pakistan expressed an unfriendly position towards cryptocurrencies, proposing to completely ban them. The regulator believes that crypto assets carry more risks than benefits.