May 18, 2023

Pakistan To Continue Banning Crypto Services – Minister



Pakistani Minister of State for Finance and Revenue Aisha Ghaus Pasha said his country would not legalize crypto trading and will continue to ban cryptocurrency services operating.

During a session of the Senate Standing Committee on Finance and Revenue, Pasha attributed banning crypto trading to the requirements of the Financial Action Task Force (FATF), which removed Pakistan from the Grey List in October. The Grey List includes countries, whose bodies cannot effectively fight money laundering, terrorist financing, and proliferation financing, according to Cointelegraph.

State Bank of Pakistan (SBP) Director Sohail Jawad also agreed with Pasha’s remarks on crypto. The SBP and Pakistani Information and Technology Ministry will outline legislation for the ban.

Honestly, FATF cannot impose sanctions against Pakistan if it did not fulfill the requirements, but Pakistan seeks to get a clear report due to its deep economic crisis and its negotiations with the International Monetary Fund (IMF) for a bailout.

Meanwhile, the crypto community in Pakistan denounced the ban on crypto trading. Crypto adoption in the Asian country is relatively high as Pakistani citizens reportedly hold crypto assets worth $20 billion in 2021.

Since January, the Pakistani central bank reportedly called on Pakistan’s Sindh High Court not only to ban cryptocurrency activity but also to impose penalties against crypto exchanges.

However, Pakistan seeks to launch its digital currency by 2025. In December 2022, the Pakistani central bank signed new laws allowing money institutions (non-bank ones) to offer digital payment instruments to ensure the timely issuance of a CBDC in the next three years.

In March, the Pakistan Banks’ Association (PBA), a group of 31 traditional banks, agreed on developing a blockchain-based Know Your Customer (KYC) platform.

Author profile

Whether you want to learn about NFT, Blockchain, Web3.0, Metaverse, or any other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.