The State Bank of Pakistan (SBP) is said to be trying to ban all cryptocurrency transactions in Pakistan.
The Supreme Court of Pakistan in Sindh reportedly held a hearing on the legal status of cryptocurrencies in the country, where several Pakistani authorities, including the SBP, submitted a document to the court arguing that cryptocurrencies such as Bitcoin (BTC) are illegal and cannot do so. Uses. for trade. … …
According to local news channel Samaa TV, the document cites at least 11 countries, including China and Saudi Arabia, that have decided to ban cryptocurrencies. The Central Bank of Pakistan has reportedly called for the right not only to ban cryptocurrency activities, but also to impose fines on cryptocurrency exchanges.
SBP also cited several FIA investigations into crypto exchanges, citing investor protection risks as well as concerns about money laundering and terrorism. As previously reported, in early January, the FIA launched a criminal investigation against Binance, the world’s largest cryptocurrency exchange, alleging a possible link to a multi-million dollar cryptocurrency fraud in the region.
While SBP recommends a general ban on cryptocurrency, the Supreme Court of Sindh has not issued an order banning cryptocurrency transactions in Pakistan.
Instead, the court ruled the bank’s appeal to the ministries of finance and justice, which will make the final decision on the legal status of cryptocurrencies in the country and determine whether the ban on cryptocurrency is constitutional.
The news comes years after SBP first introduced a ban on the trading of virtual currencies and tokens in April 2018. At the time, the central bank argued that cryptocurrencies such as bitcoin or native coin offerings were not legal tender and were not “issued or guaranteed.” before the government. in Pakistan.”
SBP did not immediately respond to Cointelegraph’s request for comment. This article will be updated with new information pending.
Related: Countries Banning Cryptocurrency Doubled In Three Years
Recent actions by the Pakistani government reflect similar developments in many countries, including India and Russia, where central banks are aggressively trying to ban cryptocurrencies, while other parts of the government are not necessarily inclined to do so. In 2020, India’s central bank was forced to lift the ban on bank trading by crypto-related companies according to a ruling by the country’s Supreme Court.