How Pakistan’s New Currency Regulations Could Affect Finance Site Development
In April 2019, the Pakistani government made the announcement that it would
out new digital currency regulations. Faced with growing fraud and criminal
activity in the digital currency sector in the country, the government
will offer a licensing scheme for electronic money organizations.
Pakistan has banned cryptocurrency since 2018, but these regulations could
address the government’s biggest issues with the electronic money and could
lead to them being allowed. This could mean big things for the country’s
electronic currency industry and for the website developers who often work with
these organizations to take their operations online.
How Will This
The regulations may lead to some digital currency groups moving away
from the industry, not willing to put in the money needed to offer
Know-Your-Customer technology and security mechanisms. Web developers who don’t
have experience with security tools and are more experienced at making sites
look good and don’t offer advanced security will lose out.
Developers who do have experience with site security could raise their fees,
though. There’s growing support for cryptocurrency, and more people
learn how to trade Bitcoin. People want to speculate on the value of
Bitcoin, seeing whether it could replace fiat currency, or sell Bitcoin for a
profit. Contracts for difference (CFDs) offer that service without actually
trading in Bitcoin or other cryptocurrencies as they essentially offer a
service based on the prices on the market. Organizations that intend to offer
better security, sticking to regulations laid out by the Pakistani government,
could potentially win big. However, to make that happen, they will need to
hire talented web developers to do the job.
Security Over Style
Pakistan hasn’t announced how an electronic money organization would get a
license and what a license would allow them to do. However, the regulations
will likely make sure that electronic money groups have Know-Your-Customer
(KYC) mechanisms in place and are able to ensure that wrongful activity
isn’t taking place on their platforms.
KYC technology allows platforms to verify the identity of the user. Using a
security partner, this information is then checked against criminal databases
to confirm that there are no irregularities or potential risk of misdeeds. This
technology asks users to upload images of documents and personal data, and for
the digital money platform, it needs to be secure.
Web developers who want to get hired by a financial technology company or a
company dealing in cryptocurrency need to first read up on the regulations of
the industry. With the Pakistani government’s new regulations, this is
difficult as it’s not yet known when and why it will give out a license. In
other regions, such as the United States, the regulations are more transparent,
asking that sites are compliant with KYC, anti-money laundering, and Know Your
This will allow the developer to go after clients in different regions and
states and get the right training to create secure sites for them that follow regulations.
It may not be an easy process, but with the growing cryptocurrency industry, it
could be a very valuable career.