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The State Bank of Pakistan (SBP), the country’s central bank, has reportedly decided to ban the use of all cryptocurrencies in the country. The central bank also asked the Sindh High Court to ban “unauthorized trading” from crypto exchanges and impose sanctions on them.
Pakistani inter-ministerial committee recommends ban cryptocurrency and all related activities
A high-level inter-ministerial committee formed to make recommendations on whether any form of cryptocurrency should be allowed under Pakistani law is said to have submitted its report to the Sindh High Court on Wednesday.
The committee was formed by the High Court of Sindh 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, Authority telecommunications and the Securities and Exchange Commission.
The 38-page report, submitted to the tribunal by SBP Deputy Governor Sima Kamil, recommends a total ban on all cryptocurrencies and related activities in Pakistan.
The committee said the cryptocurrency should be declared illegal, noting that after careful analysis it found that the risks of the cryptocurrency far outweigh its benefits to Pakistan. The report also warns that the cryptocurrency could be used for money laundering and terrorist financing.
Further, the committee urged the court to ban “unauthorized trading” of crypto exchanges and impose sanctions on them, as some countries have done. The report cites recent investigations by Pakistan’s Federal Investigative Agency (FIA) into crypto exchanges, including Binance, and the risks they pose to investors.
The Sindh High Court ordered the committee to send a copy of the report to the Ministry of Finance and the Ministry of Law to make the final decision on whether or not to allow a form of cryptocurrency in Pakistan. The court also ordered the two ministries to jointly recommend whether crypto business in any form can be legally carried on in the country. They are due to submit a report of their decision on April 11.
Petitioner Waqar Zaka, TV host and crypto entrepreneur, argued that cryptocurrency should be declared legal. The court will resume hearing his petition on April 12.
Keywords in this story ban bitcoin, ban crypto, illegal bitcoin pakistan, illegal crypto, illegal crypto pakistan, interministerial committee, pakistan, central bank of pakistan, pakistani government, SBP, High Court of Sindh, State Bank of Pakistan
Do you think Pakistan is going to ban cryptocurrency soon? Let us know in the comments section below.
Kevin helms
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