To Regulate the Cryptocurrencies in Pakistan: Demand of Time

Abstract

The lack of cryptocurrency legislation presents several issues, and the purpose of this article is to investigate those challenges. Several legal issues are brought about because no one law applies everywhere. The lack of a consistent legal framework is a barrier to the development of cryptocurrency markets. Investors who want to participate in such kind of money or asset are usually discouraged since there is no established legal framework to guide them in doing so. This study is based on qualitative research and researcher analysed statutes, local and international laws, protocols, conventions, treaties and reports for the triumph of this work. This study intends to evaluate the various approaches that particular governments have taken and the beginnings of legal texts that they have drafted in order to address these problems. The purpose of this evaluation is to bring attention to the obstacles that have been generated as a result of the lack of regulation. Even though they come with their advantages, Cryptocurrencies are now working toward integration into the conventional financial system. Since 2010, cryptocurrencies have been the fruit and consequences of a new technology proliferating. This new technology came into being in 2010. Despite this, the expansion of the blockchain ecosystem is confronted with several challenges. However, many states are still wary of the applications and widespread adoption of blockchain technology, despite their want to join the blockchain revolution. The formation of an appropriate regulatory framework for the development of this emerging technology would make it feasible for crypto-assets to be circulated, which is an essential part of the economy for nations that want to maintain their attractiveness from a financial perspective.