Pakistan’s central bank reportedly wants to ban crypto

The
State
Bank
of
Pakistan
(SBP)
is
reportedly
seeking
to
ban
all
cryptocurrency
transactions
in
Pakistan.

Pakistan’s
Sindh
High
Court
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. 

According
to
local
news
channel
Samaa
TV,
the document cited
at
least
11
countries, including
China

and
Saudi
Arabia,
that
have opted
to
ban
cryptocurrencies.
The
Pakistani
central
bank
reportedly
urged
the
court
not
only
to
ban
cryptocurrency
activity
but
also
to
impose
penalties
against
crypto
exchanges.

The
SBP
also
referred
to
several
investigations
against
crypto
exchanges
by
the
Federal
Investigation
Agency
(FIA),
citing
investor
protection
risks
as
well
as
money
laundering
and
terrorism
concerns.
As
previously
reported,
the
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
region.

Despite
the
SBP
recommending
a
blanket
ban
on
crypto,
the
Sindh
High
Court
has
not
ordered
a
ban
on
crypto
transactions
in
Pakistan
just
yet. 

Instead,
the
court
has
ordered
that
the
bank’s
appeal
be
sent
to
the
finance
and
law
ministries,
which
will
make
a
final
determination
on
the
legal
status
of
cryptocurrencies
in
the
country
and
ascertain
whether
a
crypto
ban
would
be
constitutional.

The
news
comes
years
after
the
SBP

issued

an
initial
prohibition
on
dealing
in
digital
currencies
and
tokens
back
in
April
2018.
At
the
time,
the
central
bank
argued
that
cryptocurrencies
such
as
Bitcoin
or
initial
coin
offerings
were
not
legal
tender
and
were
not
“issued
or
guaranteed
by
the
government
of
Pakistan.”

SBP did
not
immediately
respond
to
Cointelegraph’s
request
for
comment.
This
article
will
be
updated
pending
new
information.



Related:




The
number
of
countries
banning
crypto
has
doubled
in
three
years

The
latest
moves
by
the
Pakistani
government
echo
similar
events
developing
in
many
countries,
including
India
and
Russia,
where
the
central
banks
are
trying
hard
to
ban
crypto,
while
other
parts
of
the
government
are

not
necessarily
inclined
to
such
a
ban
.
In
2020,
India’s
​​central
bank

had
to
lift
its
ban
on
banks’
dealings

with
crypto-related
firms
in
accordance
with
an
order
by
the
country’s
Supreme
Court.

read original article here