Legalizing crypto trading in Pakistan might produce at least $100 million (Rs20 billion) in taxes over the course of a year.
This was mentioned by Zeeshan Ahmed, Rain Financial Inc’s country general manager, during a roundtable discussion on Tuesday about the role of crypto-assets, their impact, and the benefits of regularization in Pakistan.
Ahmed was alluding to a Chainalysis analysis that states Pakistani crypto dealers made $650 million in profits between July 2020 and June 2021, and that if taxed at 15% (India levies crypto gains at 30%), the government might earn more than $100 million or Rs20 billion in taxes.
“Tax collection will be improved and strengthened.” On a significant untaxed activity currently operating in the market, a larger tax base is available. When you consider the scale of the market, there’s still a lot of room for growth,” Zeeshan Ahmed noted.
The Rain team reportedly met with a number of stakeholders, including the State Bank of Pakistan, the SECP, the Ministry of Finance, the FBR, the MoITT, and others, and according to Aatiqa Lateef, Rain Financials’ director of public policy (Pakistan), the meetings were fruitful, and she expects good things to come out of the country’s legalization of crypto trading.
Rain Financial is leading the charge to correct this. It hopes to persuade the country’s officials to legalize cryptocurrency trading before entering the market.