Mr. Zeeshan Ahmed, Country General Manager for Rain Financial Inc., claimed that simply allowing crypto trading in Pakistan could produce at least $100 million in taxes — or Rs. 20 billion — in one year.
Mr. Ahmed referred to a Chainalysis analysis that states Pakistan-based crypto dealers produced $650 million in earnings from July 2020 to June 2021. If taxed at only 15% (India levies crypto gains at 30%), the government could generate more than $100 million or Rs. 20 billion in taxes.
Considering how much this is, Pakistan’s whole salaried class paid roughly Rs. 151 billion in taxes in 2020-21.
Not to mention the $650 million in earnings made by Pakistani crypto dealers, or Rs. 20 billion in potential taxes each year is a very modest estimate, given that trading is not permitted in Pakistan. The FIA has recently been on the hunt for crypto traders.
If approved and legalized, profits (and, eventually, taxes) may be many times what is indicated above.
Rain Financial Inc, which has crypto exchange licenses in Bahrain and Turkey, is also trying to enter the Pakistani market. Still, unlike other exchanges, it aims to enter the nation only when crypto trading is legalized in Pakistan.
The Rain team reportedly met with several stakeholders, including the State Bank, SECP, Ministry of Finance, FBR, MoITT, and other bodies. According to Ms. Aatiqa Lateef, Rain Financial’s Director of Public Policy (Pakistan), the meetings were fruitful. She expects positive things to happen regarding the legalization of crypto trading in the country.
Trading in Pakistan
Cryptocurrency trading is prohibited in Pakistan. This implies you can’t trade crypto assets on an exchange or even privately with another individual in the nation.
While it is unlawful, Pakistanis have frequently traded crypto on exchanges such as Binance (another crypto exchange), which is illegal. If caught functioning, the FIA might imprison the traders for the offense.
The FIA has lodged hundreds of FIRs against individuals recently and has detained a few traders.
Rain Financial is leading the charge to alter that. It intends to persuade the country’s officials to legalize crypto trading before entering the Pakistani market and offering its services there.
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