CRYTO'S -MULTI-TRILLION DOLLAR- CRAMPS : CASE STUDY ESSAY

 

CASE STUDY : ENGINEER  FOUNDER esteemed  Syed Hussain Ali is working full time on Crypto and Apps and Startups and Forward Integration. I profoundly thank him for his weekly briefings.

IMAGINE - a staggering $35 billion in cryptocurrency transactions flooded into Dubai in just one year, according to a report by Chainalysis.

IMAGINE, this gold rush saw a colossal 67 percent of investments pouring in from deep-pocketed institutional players, each transaction exceeding a coll $1 million.

A mere three-hour 35-minute flight separates the crypto paradise of Dubai from the scenic, but economically struggling, Islamabad. While Dubai reels in crypto billions, Islamabad struggles to attract foreign capital.

In April 2024, a meagre $358 million in foreign direct investment [FDI] trickled into Pakistan - a stark contrast to the crypto tsunami sweeping across the Gulf.

Islamabad, a mere three-hour, 35 minute flight from Dubai's thriving crypto hub, needs to act decisively : establish a cryptocurrency hub exchange in Pakistan, create a government-regulated cryptocurrency exchange to provide a secure and reliable platform for trading cryptocurrencies; and ensure the exchange of adheres to strict AML/KYC standards and operates with high levels of security and  transparency.

JUST a three-hour, 35-minute flight separates Islamabad from the cryptocurrency boom in Dubai, Pakistan must act decisively Pakistan must allow tax-free crypto trading. Pakistan can attract billions by eliminating capital gains taxes on cryptocurrency trading profits..

JUST a three-hour, 35-minute flight separates Islamabad from the cryptocurrency boom taking place in Dubai. Islamabad must urgently establish a regulatory sandbox for crypto businesses.

Islamabad must create a controlled environment for cryptocurrencies to experiment and innovate. Islamabad must offer two things : regulatory flexibility and reduced compliance burdens. Islamabad, a mere 3-hour, 35-minute flight from Dubai, sits at a crossroads.

Islamabad must incentivise blockchain adoption. Islamabad must offer tax incentives, such as reduced corporate taxes.

WHY can't Pakistan attract $35 billion in cryptocurrency investment like the UAE?

The answer lies in a confluence of factors.  Pakistan's murky regulatory landscape breeds uncertainty, deferring both domestic and foreign investors.

Cryptocurrency businesses grapple with restricted access to banking services, hindering their operations. Yes, limited access to highspeed internet further exacerbates these challenges.

To capitalise on this burgeoning sector, Islamabad must urgently address these critical bottlenecks and secure its slice of the multi trillion-dollar crypto pie.

The World Students Society thanks Farrukh Saleem.