State Bank of Pakistan and Government Weigh in on Crypto Ban
The State Bank of Pakistan (SBP) and the federal government are reportedly considering banning all cryptocurrency transactions in the country, according to Cointelegraph on Thursday, January 13, citing reports from the Sindh High Court (SHC) and the network of SAMAA television. .
The CHS heard a case about digital currencies and was urged by the SBP to take action to ban cryptocurrencies and impose fines against crypto exchanges. With no laws to regulate digital currencies, the status of crypto in the country is on hold.
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The CHS has called on the federal government to develop crypto regulations by January 20. In October 2021, the government ordered officials to form a committee headed by the federal finance secretary and submit a report regarding the legal status of the currency.
The report, submitted to the High Court on Wednesday January 12, stated that the cryptocurrency was illegal and could not be used for commercial purposes.
The report names 11 countries that have banned cryptocurrencies, including China and Saudi Arabia, and also highlights a recent investigation by the Federal Investigation Agency in Pakistan that highlighted the risk to investors posed by exchanges. cryptographic like Binance and OctaFx.
The Central Bank of Pakistan has also raised concerns about money laundering and terrorism regarding crypto.
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Whether a ban on cryptocurrencies is within reach of the Pakistani constitution will be determined by the ministries of law and finance, which would also be tasked with building a legal framework.
Transactions in digital currency and tokens were initially banned in 2018, with the central bank indicating that since bitcoin and related currencies were not legal tender, they could not be issued or guaranteed by the government.
Cryptocurrencies have caught the eye of thousands of investors in Pakistan who are said to have invested some $20 billion, according to the chairman of the Federation of Pakistan Chambers of Commerce and Industry, Nasir Hayat Magoon.