According to reports, Pakistan’s State Bank of Pakistan (SBP) is considering prohibiting all cryptocurrency transactions.
The Sindh High Court convened a hearing on the legal status of cryptocurrencies in Pakistan. During which multiple Pakistani agencies, including the SBP, presented a paper to the court saying that cryptocurrencies like Bitcoin (BTC) are unlawful and cannot be used for commerce.
According to local news programme Samaa TV, the paper listed at least 11 nations that have banned cryptocurrency, including China and Saudi Arabia. According to reports, the Pakistani central bank requested the court to not only prohibit cryptocurrency activities but also to penalise cryptocurrency exchanges.
Case Is Still Pending In The Courts
A user highlighted the fact that “the case is still pending in the court and the final decision is yet to be released”. He also wrote about the $100 Million scam of cryptos happened in the nation via Binance platform and due to this Pakistani Government taking huge actions.
The SBP also mentioned various Federal Investigation Agency (FIA) investigations into crypto exchanges, citing investor protection issues as well as money laundering and terrorist concerns. The FIA launched a criminal investigation against Binance, the world’s largest crypto exchange, in early January, citing a probable connection to a multi-million-dollar crypto fraud in the region, as previously reported.
Despite the SBP’s recommendation for a blanket ban on cryptocurrency, the Sindh High Court has not yet issued an order prohibiting cryptocurrency transactions in Pakistan.
Instead, the court has directed that the bank’s appeal be referred to the finance and law ministries, which will make a final decision on the legal status of cryptocurrencies in the country and determine if a crypto ban is constitutional.
The announcement comes years after the SBP first prohibited dealing in digital currencies and tokens in April 2018. The central bank claimed at the time that cryptocurrencies like Bitcoin and initial coin offerings were not legal money since they were not “issued or guaranteed by the government of Pakistan.”
The Twitter Blast
Twitter users always react in a haywire manner and this time thrashed the Pakistan’s Government for restricting future technology.
One of the user Dennis porter mocked Pakistan for banning cryptos and made a sarcasm that the nation will soon un-ban it.
Some more Tweets from angry users.
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