Cryptocurrency services have been permanently banned in Pakistan. The decision came just now and has shocked the economists as well as cryptocurrency enthusiasts in the country. Today, Senator Saleem Mandviwala presided over a meeting of the Standing Committee on Finance at Parliament House, during which it was revealed that the State Bank of Pakistan (SBP) and the Ministry of IT & Telecom had initiated efforts to prohibit the utilization of cryptocurrencies within the nation.
The committee issued instructions to relevant authorities to block cryptocurrency services and websites involved in cryptocurrency transactions within Pakistan. During the committee meeting, Minister of State for Finance and Revenue Dr. Aisha Ghaus Pasha conveyed to the members that the legalization of cryptocurrencies in Pakistan would never take place.
She highlighted that the Financial Action Task Force (FATF) had imposed stringent conditions regarding the practicality and effectiveness of cryptocurrencies, making it clear that such a form of currency would not be permitted in Pakistan.
The Senate Committee received a briefing on the significant reduction in the global cryptocurrency market capitalization and cryptocurrency services, which had declined from $2.8 trillion to $1.2 trillion. Chairman Salim Mandviwala asserted that Pakistani citizens had invested billions of dollars in this controversial financial instrument.
It was reported to the committee that the Federal Investigation Agency (FIA) and the Financial Monitoring Unit (FMU) of the Federal Board of Revenue were actively monitoring Pakistani investments in cryptocurrencies. Additionally, an ongoing investigation was underway to address this matter.
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Providing further information, Sohail Javaad, the Director of the Payment Systems Department at the central bank, revealed that more than 16,000 different types of cryptocurrencies had been developed to date, and there has been no check and balance of these cryptocurrency services.
Additional officials from the State Bank of Pakistan (SBP) informed the Senate panel that cryptocurrencies pose significant investment risks. They described the medium of exchange as a completely fraudulent scheme and asserted that its legalization would never occur in Pakistan.
After thorough discussions on the matter, the standing committee issued instructions to authorities to enforce a ban on the utilization of cryptocurrencies and cryptocurrency services in Pakistan.
In recent years, the cryptocurrency realm has experienced several regulatory interventions in Pakistan, indicating a renewed effort by local authorities to combat illicit sources of financing. It is worth mentioning that the State Bank of Pakistan (SBP) has been conducting internal research on cryptocurrencies as a part of its future monetary strategies within the country.
Nevertheless, despite earlier expectations of a potential regulatory shift towards recognizing digital assets as legal tender, the current situation is highly uncertain, making it difficult to determine whether or not Pakistan will ultimately adopt measures to regulate digital assets.
Meta: Cryptocurrency services have been banned in Pakistan after some serious discussions. Here is what you need to know about it.