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Tuesday, July 16, 2024

Pakistan’s Central Bank Decides to Completely Ban Cryptocurrency

Sima Kamil, Deputy Governor, State Bank of Pakistan, submitted a 38 page repor

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Sima Kamil, Deputy Governor, State Bank of Pakistan, submitted a 38 page report and recommends a complete ban on all cryptocurrencies and related activities in Pakistan. The central bank SBP has also asked the Sindh High Court to ban “unauthorized operations” of crypto exchanges and impose penalties on them.

According to Chainalysis’ Global Crypto Adoption Index, Pakistan ranks 3rd in terms of highest number of crypto users amongst the top 10 countries.

Sindh High Court constituted a multi-ministerial high-level committee under the supervision of the deputy governor of the State Bank of Pakistan (SBP) and officials from the Pakistani Ministry of Finance, Ministry of Information Technology, Telecommunication Authority, and the Securities and Exchange Commission to make recommendations on whether any form of cryptocurrency should be permitted under Pakistani law reportedly submitted its report to the Sindh High Court Wednesday.

The committee stated that cryptocurrency should be declared illegal, the risks of cryptocurrency far outweigh its benefits for Pakistan. The report also warns that cryptocurrency could be used for money laundering and terrorism financing.

Furthermore, the committee urged the court to ban “unauthorized operations”  and impose penalties on them as some countries have done. The report cites recent investigations by Pakistan’s Federal Investigation Agency (FIA) of crypto exchanges, including Binance, and the risks they pose to investors.

The Sindh High Court directed the Ministry of Finance and the Ministry of Law to make the final decision and also to recommend whether crypto business of any form can be legally carried out in the country. They are to submit a report of their decision on April 11.


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