ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has not issued approval/license to any trading platform for cryptocurrencies, as the commission does not regulate cryptocurrency/virtual currency or any trading platform providing such services.
Senior SECP officials told Business Recorder here on Tuesday that the SECP does not regulate cryptocurrency/virtual currency or any trading platform providing such services.
In line with the State Bank of Pakistan (SBP) circular, the SECP has issued instructions on August 27, 2020 circular dated April 6, 2018, wherein, the SECP has directed all companies and Limited Liability Partnerships to ensure compliance of the SBP’s circular.
The said circular prohibits dealing in virtual currencies. Responding to a query, officials added that it is once again emphasised that all currencies related matters are under the regulatory domain of the SBP and no approval/license to any trading platform for cryptocurrencies has been awarded by the SECP.
According to the SECP, the SECP can regulate digital/virtual assets including security tokens, but it does not include any form of virtual/cryptocurrency or central bank digital currency. One of the key advantages of digital assets is the ability to fractionalise each asset.
Digital assets can be broken into more affordable and transferable units that create an opportunity for greater liquidity and investor diversity. Fractional ownership and trading of digital assets in secondary markets unlock liquidity in previously illiquid markets, creating entirely new tradable assets – such as real estate tokens – and enabling a more standardised form of trading for currently illiquid assets, such as corporate bonds.
Moreover, the barriers to issue an asset or security are significantly lowered opening up greater opportunity for smaller issuers, while existing issuers benefit from new forms of securities. The digital asset landscape has matured significantly and momentum is…
