Pakistan’s Cryptocurrency Regulatory Framework: Safeguarding Data, Consumers and Financial Stability through Global Blockchain Best Practices

Abstract

Our ways of working and living have been potentially transformed by the blockchain technology, and Pakistan is no exception. In this study, we explore how blockchain can improve financial inclusion in Pakistan, resultantly access to financial services is easier and reducing transaction costs. This study unveils hidden challenges to address including but not limited to ambiguous regulations, infrastructure limitations, public awareness issues pertaining to blockchain technology. This research proposed an extension of Legal Framework Theory (LFT) into the development of Virtual Currency Legal Framework Theory (VCLFT). The innovation of VCLFT is influenced from the scholarly work carried out under LFT. The key recommendation in the research comprising upon the principles for establishing a clear regulatory framework for stakeholders, policy makers and regulators. It further emphasizes the requirement for establishment of framework and infrastructure that is supportive to such framework. The need for harnessing the opportunities in blockchain to adopt financial inclusion of financial growth in Pakistan are highlighted. The research will open further avenues to carry out future research towards adoption of blockchain and its potential in Pakistan.