The central bank of Pakistan, the State Bank of Pakistan (SBP), has allegedly decided to prohibit the usage of all cryptocurrencies inside the nation. The central bank has also requested that the Sindh High Court prohibit “unauthorized activities” of cryptocurrency exchanges and levy fines.
An Interministerial Committee in Pakistan has recommended that cryptocurrency and all similar events be banned.
According to reports, a high-level interministerial committee was constituted to provide suggestions on whether any kind of virtual currency should be legal in Pakistan delivered its findings to the Sindh High Court on Wednesday.
The Sindh High Court established the panel, which is led by the deputy head of the State Bank of Pakistan (SBP) and includes representatives from the Pakistani Ministry of Finance, Ministry of Information Technology, Telecommunication Authority, and Securities and Exchange Commission.
SBP Deputy Governor Sima Kamil filed a 38-page case to the court that advises a nationwide ban on all cryptocurrency and allied areas in Pakistan.
The group recommended that cryptocurrencies be declared illegal, stating that after thorough consideration, the hazards of cryptocurrency exceed the advantages for Pakistan. Cryptocurrency, according to the research, might be used for terrorist financing.
The group also requested the court to prohibit “unauthorized activities” of bitcoin trading and apply fines, as several nations have done. Recent probes by Pakistan’s Federal Investigation Agency (FIA) into cryptocurrency exchanges, notably Binance, and the hazards they represent to consumers are cited in the paper.
The Sindh High Court ordered the panel to transmit a copy of its findings to the Ministries of Finance and Law, who will ultimately decide whether any kind of cryptocurrency would be permitted in Pakistan. The court also ordered the two departments to collectively determine whether any sort of crypto enterprise is permitted in the country. On April 11, they must provide a report on their choice.
Waqar Zaka, a tv broadcaster, and crypto businessman has petitioned the court to declare cryptocurrencies lawful. On April 12, the court will continue hearing his appeal.
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