Pakistan imposes ban on cryptocurrency services across country, raising concern amongst public
The State Bank of Pakistan (SBP) and the Ministry of Information Technology have started working on the ban.
Pakistan has banned cryptocurrency services across the country, raising concerns amongst crypto holders.
The primary reason behind this step has been to prevent illegal digital currency transactions in accordance with the guidelines provided by the global anti-terror financing watchdog. The State Bank of Pakistan (SBP) and the Ministry of Information Technology have started working on the ban.
Pakistan imposes ban on cryptocurrency
The Minister of State for Finance and Revenue, Dr. Aisha Ghaus Pasha remarked that cryptocurrency will never be legalized in the country because it goes against the conditions set by the FATF or Financial Action Task Force.
Director of SBP, Sohail Jawad backed Pasha’s views, stating that crypto transactions are high risks and won’t be allowed in Pakistan. He further emphasized the fact that there are over 16,000 types of cryptocurrencies, and the market is now shrinking from $2.8 trillion to $1.2 trillion.
Pakistan People’s Party (PPP) Senator, Saleem Mandviwalla raised concerns that there are billions of dollars invested in the market. However, in response to this, the SBP official said that FIA and Financial Monitoring Unit (FMU) are looking to address these concerns.
The ban on crypto services in the nation is driven by the country’s aim to meet the FATF requirements. This is also important as Pakistan was removed from the gray list recently. Minister Pasha said that banning crypto was one of the FATF’s conditions for Pakistan to get removed from the list. The news of this ban has also caused disapproval from the general public. Crypto adoption has been high in Pakistan, with reports saying that Pakistani citizens have held around $20 billion worth of crypto in just 2021.
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