Pakistan Ban Crypto and Associated Services. The government of Pakistan has taken a significant step by deciding to prohibit the sale and purchase of cryptocurrencies within the country. The decision was made during a meeting of the Standing Committee on Finance of the Senate, chaired by Senator Saleem Mandviwala.
Pakistan ban crypto and associated services
Islamabad, Pakistan – In a groundbreaking move, the Pakistani government has decided to impose a ban on the sale and purchase of cryptocurrencies within the country. The decision was reached during a meeting of the Standing Committee on Finance of the Senate, presided over by Senator Saleem Mandviwala.
The primary aim of this prohibition is to prevent the utilization of cryptocurrencies and associated services on the internet. The government has initiated efforts to impose restrictions on the circulation of digital currencies, including outlawing cryptocurrency-related software.
During a comprehensive briefing on cryptocurrencies, the State Bank of Pakistan emphasized the various risks associated with these digital assets. The cryptocurrency market has recently witnessed a significant decline, plummeting from a total valuation of $2.8 trillion to $1.2 trillion.
Sohail Jawad, the Director of the State Bank, underscored the high-risk nature of cryptocurrencies and categorically denounced them as complete fraud. Jawad further questioned the legitimacy and practicality of cryptocurrencies, firmly declaring that they would never be allowed in Pakistan.
The Federal Investigation Agency (FIA) and the Financial Monitoring Unit have also taken decisive action against Pakistani investments in cryptocurrencies. Jawad drew attention to the sheer number of useless cryptocurrencies in circulation, totaling over 16,000.
Ayesha Ghos Pasha, highlighting the sensitivity of the issue, asserted that cryptocurrency would not receive permission for operation in the country. Given Pakistan’s recent removal from the gray list of the Financial Action Task Force (FATF), Pasha emphasized the imperative of mitigating the risks associated with cryptocurrencies. She made it abundantly clear that the legalization of cryptocurrency in Pakistan would not be considered.
Director Sohail Jawad further elucidated that banks had been instructed in 2018 to refrain from engaging in transactions involving cryptocurrencies. Countries like Pakistan are particularly vulnerable to such digital currencies, which are difficult to effectively regulate and monitor. Jawad highlighted China’s decision to ban the internet and impose restrictions on the use of cryptocurrencies as a relevant example.
Committee Chairman Saleem Mandviwala acknowledged that billions of dollars have been invested by Pakistanis in cryptocurrencies. He expressed awareness of individuals actively involved in cryptocurrency businesses who may continue their operations despite the ban.
Farooq H. Naik, calling for stringent measures, recommended severe punishments for those Pakistanis involved in cryptocurrency-related activities and urged the implementation of appropriate legislation.
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