Countries in the Indian subcontinent have shown unexpected potential in the crypto space. Along with India and Sri Lanka, the citizens of Pakistan have traded heavy volumes of cryptocurrencies. Nasir Hayar Magoon from the Pakistan Chambers of Commerce and Industry has recently claimed that Pakistanis hold Bitcoin worth approximately $20 billion. However, critics claim that there are sources of the data Magoon mentions. Magoon countered by saying that the data is from research published by the chamber of commerce. Nonetheless, it is evident that many people in Pakistan have bought substantial amounts of Bitcoin and other cryptocurrencies. An earlier study by Chainlink supported Magoon’s estimates and claimed that many people in Pakistan had bought crypto in the last two years. Another Chainalysis study ranks Pakistan third in countries with the highest crypto adoption rates, following Vietnam and India.
While India has a rudimentary crypto regulation in place, Pakistan has none. At the same time, money laundering and illegal payments are pervasive problems in the country. Anti-crypto lobbies of Pakistan argue that giving the crypto industry free rein would see an increase in terrorism financing and financial crimes. Pro crypto lobbies, on the other hand, believe that Bitcoin can be an effective hedge against the high inflation rates of the country. The country’s top officials are yet to speak about the subject. While there might be a possible regulation in 2022, it is not likely to happen before the first quarter.
