Pakistan’s central bank would like to ban crypto

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The State Bank of Pakistan (SBP) is reportedly seeking to ban all cryptocurrency transactions in Pakistan.

Pakistan’s High Court in Sindh reportedly held a hearing regarding the legal status of cryptocurrencies in the country, in which several Pakistani authorities, including the SBP, submitted a document to the court, claiming that cryptocurrencies like Bitcoin ( BTC) are illegal and cannot be used. for trade.

According to local news channel Samaa TV, the document cites at least 11 countries, including China and Saudi Arabia, that have chosen to ban cryptocurrencies. The Pakistani central bank has reportedly urged the court not only to ban cryptocurrency activities, but also to impose sanctions on crypto exchanges.

The SBP also referred to several investigations against crypto exchanges carried out by the Federal Investigation Agency (FIA), citing risks to investor protection as well as money laundering and terrorism issues. As previously reported, the FIA ​​opened a criminal investigation against Binance, the world’s largest crypto exchange in early January, alleging a possible link to a multi-million dollar crypto scam in the region.

Although the SBP has recommended a blanket crypto ban, the Sindh High Court has yet to order a ban on crypto transactions in Pakistan.

Instead, the court ordered that the bank’s appeal be sent to the Ministries of Finance and Law, which will make a final decision on the legal status of cryptocurrencies in the country and determine whether a crypto ban would be. constitutional.

The news comes years after the SBP issued an initial ban on trading digital currencies and tokens in April 2018. At the time, the central bank argued that cryptocurrencies such as Bitcoin or the initial offerings of coins were not legal tender and were not “issued or guaranteed by the government of Pakistan.

SBP did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending further information.

Related: Number Of Countries Banning Crypto Has Doubled In Three Years

The latest moves by the Pakistani government echo similar events unfolding in many countries, including India and Russia, where central banks are pushing to ban crypto, while other parts of the world government are not necessarily inclined to such a ban. In 2020, India’s central bank had to lift its ban on banking transactions with crypto-related companies under an order from the country’s Supreme Court.

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