The Federal government and the State Bank of Pakistan, which is the nation’s central bank institution, are said to be considering banning all cryptocurrency ventures. Authorities claimed that digital assets were illegal and ineligible to facilitate trade and could be used for terrorist financing and laundering money.
Pakistan to Ban Crypto?
Last month, the Sindh High Court asked the Pakistani government for a regulation of the cryptocurrency market within three months. The court directed lawmakers to create a committee and decide the legal status of digital assets.
90 a few days later, the central Bank of Pakistan has issued its decision proposing a total ban on all crypto and a local coverage informed .
There are many reasons why the State Bank of Pakistan requires such strict rules. It first pointed out that cryptocurrency is illegal and cannot be used in trading operations. The institution named several countries where digital assets are prohibited, including China.
Second Trading venues like Binance and OctaFX can pose risks to investors. In recent months, the former has been subject to regulatory scrutiny by many watchdogs. However, Binance’s CEO – Changpeng Zhao – recently vowed to change the structure of his firm by turning it into a licensed monetary institution with centralized headquarters.
Finally, the central bank of Pakistan claimed that bitcoin and other coins facilitate illegal activities like money laundering and acts of terror.
However, it is important to note that BTC’s blockchain technology is completely transparent. Every transaction is recorded on the digital ledger, and anyone can see it. Cash, on the other hand is the preferred method of payment for illicit operations like drug trafficking, terrorist financing, and prostitution.
The banking institution is willing to stop “unauthorized operations” in digital asset exchanges, and impose penalties against them “as other countries have done .”
Waqar Zak – one the most prominent Pakistani TV hosts, and a crypto entrepreneur, opposed such legislation. In his view, a considerable chunk of locals trade with bitcoin and alter