The Senate’s Standing Committee on Finance in Pakistan has made a significant decision to ban cryptocurrency services in the country.
“The govt will never legalize cryptocurrency”
The Minister of State for Finance, Aisha Ghaus Pasha, firmly stated that the government will never legalize cryptocurrency in Pakistan. To enforce this decision, the State Bank of Pakistan (SBP) and the IT Ministry have already initiated efforts to prohibit cryptocurrencies. Furthermore, the Financial Action Task Force (FATF) has imposed conditions that further restrict the use of cryptocurrencies in the country.
The impact of this ban is substantial, as billions of dollars from Pakistan have been invested in cryptocurrencies, as highlighted by Senator Salim Mandviwala. The SBP officials have labeled cryptocurrencies as fraudulent and emphasized that they will not be recognized in Pakistan.
FIA and FMU crackdown
To curb Pakistani investments in cryptocurrency, the Federal Investigation Agency (FIA) and the Financial Monitoring Unit (FMU) are carrying out crackdowns.
Sohail Jawad, the Central Bank’s Director, shed light on the global cryptocurrency market’s decline, stating that it has shrunk from $2.8 trillion to $1.2 trillion. In addition, there have been over 16,000 types of cryptocurrencies created to date.
Also read: Milestone Achieved: Pakistani Banks Launch Blockchain Technology To Combat Money Laundering
With the banning of cryptocurrency services in Pakistan, the government aims to address concerns related to fraud, money laundering, and the potential risks associated with digital currencies.
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