Would operating a Bitcoin exchange in Pakistan be profitable?
Cryptocurrency
Asked by Question Bot09/Jun/20141 answer
1 Answer
F
Faisal Khan
Answered 09/Jun/2014
Most likely not. To be running any form of an exchange in Pakistan would require clearance from SECP, and SECP in turn will require that you have an NOC from State Bank of Pakistan, specifically from PSD (Payment Systems Department) and EPD (Exchange Policy Department). I doubt these two departments would give an NOC for the purpose of running a Bitcoin exchange.
Having said that, even if you did get an NOC, the liquidity would be an issue. Pakistan itself is not a big enough market to run an exchange, you would need to have more liquidity on the exchange, which quite frankly is not present here. You can on-board clients from around the region, but then on-boarding money and off-boarding money from the exchange is going to present a serious problem.
The truth is, there just are not enough market makers to make the exchange a viable project.
Having said that, even if you did get an NOC, the liquidity would be an issue. Pakistan itself is not a big enough market to run an exchange, you would need to have more liquidity on the exchange, which quite frankly is not present here. You can on-board clients from around the region, but then on-boarding money and off-boarding money from the exchange is going to present a serious problem.
The truth is, there just are not enough market makers to make the exchange a viable project.