Pakistan Moves to Legalize Crypto as Government Signals Shift in Financial Policy:
Pakistan moves to legalize crypto as the government proposes amendments to the SBP Act, signaling a shift in its financial policy.
According to a report by The Express Tribune, the amendments would allow the SBP to issue digital currency and manage the country’s money in both physical and digital forms.
The amendments also include the proposal to grant the SBP power to conduct “central bank digital currency” business, adding that CBDCs could operate as a legal tender. Moreover, the SBP plans to establish a subsidiary to develop and operate digital payment systems, the report reads.
Historically, Pakistan’s central bank has categorized cryptocurrencies like Bitcoin (BTC) as illegal tender, issuing warnings about the associated risks. The central bank specifically highlighted the lack of legal protections for financial losses resulting from the high volatility of cryptocurrencies.
The proposed amendments introduce penalties for the unauthorized issuance of digital currencies, imposing fines equal to twice the value of any illegal currency created, per the report.
While no specific timeline has been announced for federal cabinet approval of the amendments, these changes could shift the narrative toward regulatory oversight and the integration of digital currencies into Pakistan’s financial framework. The amendments would also expand the SBP board’s authority, enabling it to approve a wider range of financial reports and enhance governance processes.
Victory Securities to Launch First SFC-Approved Virtual Asset Structured Products in Hong Kong:
Victory Securities will be the first licensed Hong Kong crypto broker to launch cash-settled virtual asset structured products to professional investors.
In a press release published on Nov. 4, Victory Securities announced its plans to launch virtual asset structured products for professional investors by the end of this year.
The firm received approval from the Securities and Futures Commission to promote and sell cash-settled virtual asset structured products to investors, making Victory the first licensed broker in Hong Kong to offer such products.
Virtual asset structured products grant investors the possibility to achieve higher returns, depending on specific market conditions. They will also be able to manage risks related to market volatility and virtual asset structured products.
Last year, Victory Securities shared the news that it secured approval from the Hong Kong SFC to offer virtual asset trading and consulting services to retail investors.
Additionally, Victory will also start offering designated products and services to stablecoin holders through the broker’s account to earn relatively stable returns through certain products and services.
Previously, clients can already money market funds through the VictoryX mobile application, but this is the first time the firm is offering to facilitate stablecoin holders with earning extra yield.
Both products are expected to launch by the end of this year.
Executive Director of Victory Securities, Kennix Chan, stated that at the moment, Hong Kong does not have many options for strategic investment products that are regulated by the government, especially in the virtual asset investment market.
“The regulatory green light for Victory Securities to market virtual asset structured products signifies an important step forward for Hong Kong to build a comprehensive virtual asset ecosystem,” said Chan.
On Oct. 28, Eric Yip, Executive director for intermediaries at the SFC, said the Hong Kong SFC vowed to deliver the final list of crypto exchanges at will receive full licenses by the end of the year.
In addition, Hong Kong regulators will form a consultation panel for the licenses exchanges to maintain cooperation efforts set to operate by early 2025.
On the same day, the Hong Kong Exchanges and Clearing Limited announced plans to launch a Virtual Asset Index Series on Nov. 15 2024.
