How Pakistan's New Currency Regulations Could Affect Finance Site Development

How Pakistan’s New Currency Regulations Could Affect Finance Site Development

In April 2019, the Pakistani government made the announcement that it would be rolling 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 Affect Developers?

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 want to 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. 

How to Get Hired by a Fintech Company

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 Business.

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.