The State Bank of Pakistan (SBP), the country’s central bank, has reportedly come to a decision to ban the use of all cryptocurrencies within the country. The central bank has also asked the Sindh High Court to ban “unauthorized operations” of crypto exchanges and impose penalties on them.
The Pakistan Interministerial Committee recommends banning cryptocurrency and all related activities
The report of a high-ranking interministerial commission, which was established to provide recommendations regarding whether or not cryptocurrency should be permissible under Pakistani laws, was submitted to the Sindh High Court on Wednesday.
The Sindh High Court established the committee under supervision of SBP deputy governor and representatives from Pakistani Ministry of Finance and Ministry of Information Technology.
Sima Kamil (SBP Deputy Governor) submitted a 38-page report to court recommending a total ban on all cryptocurrency and related activities within Pakistan.
The report stated that crypto currency should be illegal and stressed the fact that its potential risks far outweigh any benefits to Pakistan. It warns against cryptocurrency being used to finance terrorism and money laundering.
Furthermore, the committee urged the court to ban “unauthorized operations” of crypto exchanges and impose penalties on them as some countries have done. The report cites recent investigations by Pakistan’s Federal Investigation Agency (FIA) of crypto exchanges, including Binance, and the risks they pose to investors.
A copy of the report was to be sent to the Ministry of Finance, and to the Ministry of Law by the Sindh High Court. This will allow them to decide whether or not cryptocurrency in Pakistan is permitted. Both ministries were also asked by the court to recommend that crypto-business of any kind can legally be conducted in Pakistan. The two ministries will submit their report on April 11 detailing the decision.
Waqar Zak, the petitioner, is a TV host who also happens to be a cryptocurrency entrepreneur. His petition will be heard by the court again on April 12.
Is Pakistan likely to ban cryptocurrency soon? Comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused by the content or use of any goods, services, or information mentioned in the article.