A key international crypto company recommended the Pakistan government imposition of tax on crypto assets and frame guidelines in this respect.
Aatiqa Lateef, the director of the first licensed crypto-asset company RAIN, told the media persons that no country or individual can stay away from the imminent digital trends and developments.
Emphasizing the significance of crypto assets in any modern economy, she remarked that related officials from 44 developing and underdeveloped states are meeting in El Salvador over crypto asset regulations.
“Cryptocurrency or crypto asset as it called differently in various jurisdictions, have been largely adopted by advanced economies,” Lateef commented.
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“But the El Salvador meeting is to discuss the best regulatory framework for less advanced economies,” Aatiqa Lateef stated.
Meanwhile, GM Pakistan RAIN Zeeshan Ahmed stated that there was a potential of about $90 million if capital gain tax is imposed on crypto assets.
“The West has acknowledged that crypto-assets continue to be traded in the grey areas, likewise it is being traded-in Pakistan,” Mr. Ahmed said.
“We suggest that as Europe has done so, Gulf countries have recognized it Pakistan too should tax and regulate crypto assets,” he informed the media.
The media was also briefed that while leading businesses like Starbucks and Emirate airlines have begun to receive payments in Cryptocurrencies, India imposed a 30 percent tax on profit over it.
“This was the crypto exchanges have started to get registered with tax collection body in India,” Ahmed remarked, and the devising of laws continues.
Moreover, RAIN representatives said local challenges are mostly about building capacity and understanding crypto assets. Pakistan stands in the third slot internationally in crypto subscription and usage was increasing very fast.
During the meeting with the Finance Ministry officials, the RAIN directors said the chief challenge is the preliminary capacity building required for regulators. It was since Crypto is a very new arena and without the basic due diligence and technical guidance.
They proposed that to tackle this challenge ‘RAIN’ will share its knowledge and understanding as the first license holder to function as a crypto brokerage and a crypto exchange in the Gulf region.