Mining Industry Development Committee established in Pakistan
In the Pakistani province of Khyber Pakhtunkhwa, a federal advisory committee, the KP Crypto Advisory Committee, has been formed to regulate the cryptocurrency mining and cryptoasset industry. Ziaulla Bangash, Khyber Pakhtunkhwa Minister’s Advisor for Information Technology, tweeted that the committee had already held its first meeting on March 17. According to the direction of Minister Mahmood Khan, the provincial administration is taking serious steps to develop cryptocurrencies and mining.
To implement this initiative, consultations are being held with technical specialists in the field of crypto assets. In addition, the committee actively interacts with the Central Bank of Pakistan, the Pakistan Federal Tax Service and other departments. Bangash said that an advisory committee for KP Crypto was formed to discuss the measures that need to be taken to regulate mining and legalize it, and to develop appropriate legislation.
At the committee meeting, it was decided to create several subcommittees to address blockchain-related issues and provide technical support to the main committee. At further meetings, these subcommittees will be able to present their proposals for consideration. It is also planned to organize training workshops on the topic of cryptocurrencies in order to raise awareness of people in this area.
The technical subcommittee has already been tasked with submitting a detailed report on the installation of hydropower plants, including the operation of two mining farms launched in the province a few months ago. Note that they were opened with financial support from the state. Bangash added that the weather conditions in the province are favorable for cryptocurrency mining. In addition, Khyber Pakhtunkhwa has enormous hydropower potential, which can also be used to build new mining farms. Khyber Pakhtunkhwa became the first of four provinces in Pakistan to establish a mining and cryptocurrency committee. The committee has long called on the government
Pakistan to amend laws at the federal level to legalize cryptocurrency mining throughout the country. In 2018, the Central Bank of Pakistan banned commercial banks and financial institutions from processing digital asset transactions.
The regulator clarified that cryptocurrencies are not considered legal tender. Despite this ban, Pakistanis continue to invest in, mine and trade cryptocurrencies. Therefore, last year, the Securities and Exchange Commission of Pakistan (SECP) set about developing a legal framework for regulating cryptocurrencies.
