Pakistan’s central bank reportedly wants to ban crypto

by Gordon James

Pakistan’s central bank reportedly wants to ban crypto in the country. The Financial Supervisory Authority of Pakistan (FSA) is planning to adopt a blanket ban on cryptocurrencies, according to local media reports that cite anonymous sources close to the regulator. Some say this could be an attempt by Pakistani regulators as they move towards banning Bitcoin trading and other digital currencies within their borders completely

The “crypto ban in pakistan” is a rumor that Pakistan’s central bank wants to ban cryptocurrencies. The rumors have not been confirmed, but if the bank does decide to ban crypto, it could lead to a mass exodus of investors from the country.

 

According to reports, the State Bank of Pakistan (SBP) wants to outlaw all cryptocurrency transactions there.

Several Pakistani authorities, including the SBP, are said to have testified before the Sindh High Court of Pakistan regarding the legal status of cryptocurrencies in the nation. The SBP reportedly submitted a document to the court arguing that cryptocurrencies like Bitcoin (BTC) are illegal and cannot be used for trade. 

The paper mentioned at least eleven nations that have chosen to prohibit cryptocurrency, including China and Saudi Arabia, according to local news outlet Samaa TV. According to reports, the Pakistani central bank requested the court to penalize cryptocurrency exchanges in addition to outlawing cryptocurrency activities.

The SBP also made reference to multiple FIA investigations into cryptocurrency exchanges, noting dangers to investor safety as well as worries about money laundering and terrorism. The FIA launched a criminal investigation into Binance, the biggest cryptocurrency exchange in the world, in early January, as was previously reported, citing a potential connection to a multi-million dollar crypto fraud in the area.

The Sindh High Court has not yet ruled against a ban on cryptocurrency transactions in Pakistan, despite the SBP’s recommendation for one. 

As an alternative, the court mandated that the bank’s appeal be referred to the finance and law ministries, who would ultimately decide the country’s legal position with regard to cryptocurrencies and determine if a crypto ban would be lawful.

The decision comes after the SBP first prohibited the trading of virtual currencies and tokens in April 2018. The central bank said that initial coin offerings (ICOs) and cryptocurrencies like Bitcoin were not legal cash at the time because they were not “issued or guaranteed by the government of Pakistan.”

Cointelegraph’s request for comment from SBP was not immediately answered. In case additional details emerge, this post will be updated.

In the last three years, the number of nations that forbid cryptocurrency has doubled.

The most recent government actions in Pakistan are similar to those taking place in many other nations, like Russia and India, where the central banks are working hard to outlaw cryptocurrency while other sectors of the government are not necessarily in favor of such a ban. According to a ruling by the Indian Supreme Court, the central bank of India has to end its restriction on banks doing business with companies involved in the cryptocurrency industry in 2020.

The “bank of america crypto news” is a report that Pakistan’s central bank is considering banning cryptocurrencies. The ban would be in response to the rapid growth of digital currencies in the country.

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