The world of cryptocurrencies is expanding as more countries become familiar with its potential. Pakistan has also become a supporter of the technology and authorities have faced increasing pressure to regulate cryptocurrencies. While the country was formulating an action plan, its lead bank Alfalah has entered into a strategic partnership with the LuLu Exchange of the United Arab Emirates. This Abu Dhabi-based exchange has been a major financial services provider and aimed to accelerate and scale cross-border remittance payments through RippleNet.
The strategic partnership will reportedly allow remittances to flow between the UAE and Pakistan, making it a first payment integration for Pakistan-based Alfalah. This would allow a large part, almost 15%, of the Pakistani population in the UAE to make quick and cost-effective transfers. The report added,
“According to its expansion plans, this Bank Alfalah FinTech initiative will serve as a pilot for group deployment with Lulu Exchange’s sister companies in Bahrain, Oman, Kuwait, Qatar, Singapore and Malaysia.”
Interestingly, RippleNet has been integrating several banks from the developing part of the world to offer cross-border services. Pakistan’s sixth largest bank was another opportunity to use its services and spread its wings in the Asia-Pacific region. According to Brooks Entwistle, Managing Director of RippleNet at APAC and MENA, Pakistan was one of the largest remittance markets and they were looking to expand their reach to a new market by 2022.
Meanwhile, Pakistan’s Sindh High Court has allotted three months in length for the government led by Imran Khan to regulate cryptocurrencies. This order was given in October, which means that by January 2022, the Pakistani government should be able to offer some clarity and propose regulatory rules to crypto enthusiasts.
This is a machine translation of our English version.