Khyber Pakhtunkhwa province in Pakistan has laid out plans to pilot two hydroelectric-powered “mining farms” to leverage the current bullish crypto market, according to a government minister overseeing a new crypto policy.
Pakistani province to pilot “mining farms”
This announcement comes at a time when mainstream adoption of cryptocurrencies is gaining momentum. Bitcoin’s price has reached record levels in recent weeks, with investors such as Elon Musk investing in the coin while Morgan Stanley (NYSE:MS) became the first US bank to start offering BTC funds to its wealthy clients.
It is important to note that crypto mining farms involve large computer data center investments requiring vast power amounts. Recently, the Pakistani government established a federal committee to come up with a new cryptocurrency policy despite neighboring India moving to ban cryptocurrencies completely. However, the cost of establishing the mining project is yet to be determined.
Zia Ullah Bangash, the provincial government advisor on science and technology, stated that people have, so far, begun approaching investment. In Pakistan, crypto mining and trading exist in a grey area but, federal authorities now want to have a clear path towards the legalization of the crypto sector before opening it formally to investors.
Pakistan to regulate crypto
Three years ago, the State Bank of Pakistan indicated that crypto was not legal tender and there was no one authorized to deal with digital currencies in the country. Interestingly, Pakistani is also currently on the world Financial Task Force grey list. As a result, one of the sectors the global money-laundering regulators have asked the country to regulate better is the digital currencies sector.
Despite all this, crypto mining is a thriving sector in Pakistan with apps such as Coinbase and Binance being the most popular downloads. Bangash said that it is only the government, which has been left behind in crypto mining as people across the country are either mining or trading crypto from which they are earning income. This will also help bring governance levels in the industry to curb scams and online frauds.