Pakistan’s Khyber Pakhtunkhwa province has formed a federal committee to develop new cryptocurrency policies, including government-backed cryptocurrencies.

The minister in charge of policy told Reuters that as part of the new policy, KP Crypto’s advisory committee has already decided to test two crypto factories operated by hydroelectric plants.

The provincial government science and technology advisor, Dia Oula Bangash, said on Twitter that the committee held its first meeting on March 17. “The KP government led by Prime Minister Mahmud Khan is taking serious steps towards cryptocurrency and mining.” Pangash wrote: “We are consulting with all stakeholders and experts on this initiative.”

The KP Crypto Advisory Committee has been formed to review and discuss the “necessary steps for regulation, enactment and legislation necessary”. Cryptocurrency spokesperson and local influencer Wakar Zakka appeared to have been instrumental in setting up the commission, stating that he was the one who convinced the local government to launch the initiative. “I am grateful to Zach for his full cooperation and support from the Kimberley government,” Pangash said.

According to local reports, KP is the first of four Pakistani provinces to have a cryptocurrency and mining advisory committee. The province called on the central government to legalize the cryptocurrency and went so far as to issue a decree in December 2020 requiring federal legislation.

The State Bank of Pakistan banned cryptocurrencies in the country in 2018 and stated that cryptocurrencies such as Bitcoin (BTC) are not legal tender. Despite years of official ban, Pakistanis seem to have not stopped investing in cryptocurrencies. “Actually, our government is just not involved at the moment,” Pangash said. “People all over Pakistan are already working on it, either mining or trading cryptocurrencies, and they get income from it.”

Source: CoinTelegraph