Crypto vs. Government: Pakistan’s epic battle unfolds

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Pakistan’s official approach to cryptocurrencies is becoming increasingly strict, despite the continued enthusiasm of its citizens seeking protection against national currency depreciation in the country’s unstable political climate.

In a meeting with the Senate Standing Committee on Finance, Aisha Ghaus Pasha, Pakistan’s Minister of State for Finance and Revenue, reinforced the government’s stance against the digital currency phenomenon.

Pasha has stated categorically that cryptocurrencies “will never be legalized in Pakistan”.

According to Pasha, the tough stance is driven by stipulations imposed by the Financial Action Task Force (FATF), an international financial watchdog.

By refraining from legalizing cryptocurrencies, Pakistan aims to avoid the infamous FATF “grey list”.

Reports suggest that the State Bank of Pakistan (SBP), the country’s central bank, and the Ministry of Information Technology have been tasked with taking action to ban cryptocurrencies.

Early last year, the SBP revealed its intention to outlaw cryptocurrencies, marking its inaugural explicit stance on emerging fintech.

Simultaneously, Pakistani banks have started warning customers that crypto trading is prohibited.

Messages from Pakistani financial institutions inform customers that any transfer of funds to foreign crypto-trading platforms, directly or indirectly, is considered risky, illegal and in violation of SBP regulations.

In April 2023, a report by Dawn, a Pakistani newspaper, pointed out that customers had been officially warned against using debit or credit cards for crypto trading.

Also read:US Bitcoin Corp to power BTC mining with 150,000 rigs

Despite this, the appeal of cryptocurrencies within the country seems to be increasing.

Dawn quoted Zeeshan Ahmed, country managing director at Rain Financial, a Gulf-based crypto trading platform, who reported that annual trading volume for Pakistani wallets has increased to $25 billion from $18-20 billion. dollars before.

This crackdown on cryptocurrencies coincides with a period of political upheaval in Pakistan.

The recent arrest and subsequent release of former Prime Minister Imran Khan has sparked widespread protests across the country.

Amid the tumult, Pakistan’s currency, the rupee, plunged to a record low against the dollar, underscoring the country’s difficult economic situation.

Read more: Zero-Knowledge startup Lagrange Labs raises $4 million to tackle blockchain interoperability

Photo:Syed House ShahbyPixabay

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