Pakistan central bank recommends total ban on cryptocurrency

According to reports, Pakistan’s government and central bank, the State Bank of Pakistan, have agreed to ban cryptocurrencies. 

On January 12, local media outlets stated that the supposed complete ban recommendation would subject bitcoin exchanges to fines. 

As of now, the prohibition is only a suggestion, and it’s uncertain whether it’ll be fiercely contested as officials consider it.

The status of digital currencies has been under investigation by the Sindh High Court (SHC), and this is the first time the central bank has taken a position on the asset class. 

No space for crypto 

In October 2020, the SHC requested that the government regulate the asset class. With the prohibition, none of that looks to be necessary, as there will be no space for cryptocurrency in the country.

Terrorist funding and money laundering are the key grounds for the advice, which are identical to what other governments have stated. 

Other countries, on the other hand, have set regulations to prohibit such acts, like KYC procedures, which is a significantly less severe approach.

The suggestions make cryptocurrencies unlawful and prohibit their trading, however, it is unclear what this means for individual investors. 

The recommendation is now quite ambiguous, with the SHC requesting that the study be referred to the law and finance ministries for further consideration.

These ministries will assess whether or not a ban is permissible under the law. They will also create a legislative framework that will provide more clarity on the potential punishments. 

Pakistan prohibits the use of crypto

Popular crypto influencers have also chimed in, claiming that the “young desire crypto” and that the prime minister should speak up.

Pakistan has joined the ranks of roughly 10 other countries that have prohibited the use of cryptocurrency

China is the most prominent of these, having banned the asset class last year while developing its own central bank digital currency (CBDC).

 

Image courtesy of Cointelegraph News/YouTube

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