Crypto Ban to Be Imposed by Pakistan’s Central Bank

A Crypto Ban is about to Be Imposed by Pakistan’s Central Bank, the State Bank of Pakistan or SPB. Let’s learn more about it.

Introduction

Pakistan, officially known as the Islamic Republic of Pakistan is planning to ban cryptocurrencies in the country. The second largest Islamic country by population, has opted to outlaw the use of Cryptocurrencies in the country.

The committee behind the report

The State Bank of Pakistan (SBP), Pakistan’s Central bank has put forward a proposal to ban Cryptocurrencies in the country. This proposal is put forward by a committee headed by the first female deputy governor of the SBP, Sima Kamil.

The committee had representatives from the Ministry of Finance, the Securities and Exchange Commission of Pakistan (SECP) and the Federal Investigation Agency of Pakistan (FIA).

Clear Stance by the Central Bank

This submission marks the first time when the Central Bank of Pakistan took a clear stance on Cryptocurrencies. Previously, the SBP prohibited banks from providing financial services to cryptocurrency exchanges. This coincides with India’s Central Bank’s move to prohibit banks from engaging with Cryptocurrency exchanges in 2018.

The committee made the formal report after considering and discussing concerns on the use of cryptocurrencies for money laundering and financing terrorism. Now, the report is off to the Sindh High Court. At the time, the Sindh High Court was hearing a case about digital currencies and ordered a report on them.

Pakistan’s Crypto industry is facing some issues recently. The local arm of Binance, in a suspected scam, is under scrutiny, in which people lost more than $100 million. Also, Federal Investigation Agency of Pakistan (FIA) is actively looking at the issue.

Waqar Zaka, the Crypto lord of Pakistan

This issue was raised by a popular Pakistani personality, a local television host, internet sensation and crypto entrepreneur, Waqar Zaka. Zaka wants the court to rule that Crypto assets should be legal in the country. Also, he added that a large number of Pakistanis citizens take interest in them and like him, keenly invest in them.

Zaka’s tweet said that he’s getting strange anonymous calls that are threatening him. He also thinks that Imran Khan, the current Prime Minister of Pakistan, is against Cryptocurrencies.

Waqar Zaka, The one man army fighting against the Crypto crackdown of Pakistan

Also, after the tweet, Zaka went on to post a video threatening to hit Democracy Chowk, Islamabad to protest the ban on crypto, if the government leaves him with no other choice.

Economy of Pakistan and Cryptocurrencies

Unfortunately, Pakistan is in a dire economical state right now. Surprisingly, the country is facing record high inflation rate, is under heavy debts, and is desperately low in foreign reserves. However, he Pakistani population see Cryptocurrencies as a saviour in this dire situation. Many Pakistanis think that Cryptocurrencies will provide them some support in these tough times.

Conclusion

A Crypto Ban is about to Be Imposed by Pakistan’s Central Bank, the State Bank of Pakistan or SPB. Moreover, this isn’t the first time a country is looking to ban Cryptocurrencies over security and financial concerns. The question here to ask is that were these concerns non existent before the dawn of Cryptocurrencies?

Also, a ban is easier to pass that to enforce it. Indeed, this will be a huge hurdle for the country to overcome. Many experts think that at the time of Crypto boom, banning Cryptocurrencies instead of actively investing and benefitting from it is a foolish move. Undoubtedly, this will be more damaging to Pakistan than the government’s estimates.

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