During the fiscal year 2021, Pakistanis profited from cryptocurrency trading to the tune of more than $604 million (Rs. 98 Billion). US leads the market with $47 billion while India’s profits share is around $1.8 billion in 2021.
While the profits appear to be substantial, they are the smallest of any country covered by Chainalysis. Globally, realized crypto profits totaled more than $163 billion, with US investors leading the way with nearly $47 billion.
Pakistanis’ profits were almost evenly split between Bitcoin and Ethereum. However, Ethereum edged out Bitcoin in total realized gains globally at $76.3 billion.
Germany ($5.82 billion), Japan ($5.51 billion) and China ($5.06 billion) were other names in the top 5 countries in estimated realized gains.
According to the analytics firm Chainalysis, Pakistanis poured money into the cryptocurrency market last year, with scores of people pocketing more than $604.5 million. At the current average digital exchange rate, this equates to more than Rs. 98 billion in total profits earned during the review period.
According to report, Pakistanis possessed more than $20 billion in virtual/crypto assets. This figure represented Pakistan’s cryptocurrency value during FY21. This figure caused quite a stir among economists and analysts alike, as many mistook it for assets owned.
Regulators were concerned at the time that increased crypto trading activity would result in dollar outflows, depleting forex reserves. As a result, the State Bank of Pakistan (SBP) and other regulators proposed that cryptocurrencies be banned in Pakistan.
In its Global Crypto Adoption Index, derived through its methodology, the Chainalysis has included as many as 50 countries.