State Bank of Pakistan suggests a blanket ban on Crypto

The State Bank of Pakistan (SBP) is reportedly seeking to ban all cryptocurrency transactions in Pakistan. Pakistan’s Sindh High Court (SHC) reportedly held a hearing related to the legal status of cryptocurrencies in the country, in which several Pakistani authorities, including the SBP, submitted a document to the court, arguing that cryptocurrencies like Bitcoin (BTC) are illegal and cannot be used for trade.

The SHC has been hearing a case about digital currencies. For the first time, the central bank has taken a clear position on the cryptocurrencies and urged the SHC to not only ban cryptocurrencies but also impose penalties against crypto exchanges.

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The status of cryptocurrencies in Pakistan has been in limbo in the absence of laws and rules to regulate the use of these digital currencies for trade.

On October 20, the Sindh High Court told the federal government to regulate cryptocurrencies within three months. The court directed the government to form a committee headed by the federal secretary of finance to determine the legal status of cryptocurrencies.

The court had instructed the authorities to come up with a report on the use of cryptocurrencies. The report was submitted to the Sindh High Court on Wednesday.

The report said that cryptocurrency is illegal and could not be used for trade. The Sindh High Court has ordered that the report be sent to the finance and law ministries for a final decision on the legal status of the cryptocurrencies.

Previously, the Federal Investigation Agency (FIA) started a criminal investigation against Binance, the world’s largest crypto exchange, in early January, alleging a possible linkage to a multi-million-dollar crypto scam in the country. The news outraged the regulatory authorities as the country is struggling with it’s foreign reserves and focused on FDI.

Cryptocurrencies have attracted thousands of investors from Pakistan and they have reportedly invested $20 billion in digital currencies, according to Federation of Pakistan Chambers of Commerce and Industry President Nasir Hayat Magoon.

On the other hand, industry experts have given Pakistan’s plan to ban crypto a thumbs down as they believe that banning crypto is no solution and Pakistan is likely to make a big mistake. Industry experts also believe that it would result in brain drain from Pakistan as freelancers and developers will move out the state to fetch roles in the growing space. It is to be noted that Pakistan enjoys fourth position in the Freelancers ranking globally.

Sources: Samaa TV, Coin Telegraph

Original link: Your go to Crypto place