While global crypto currency adoption is increasing rapidly, some countries are approaching cryptocurrencies positively, while some countries are taking prohibitive steps. Pakistan was one of the countries that took the last steps against cryptocurrencies in this regard.
Pakistani local news outlet Samaa TV reported that the Central Bank of Pakistan (SBP) and the government have decided to ban the use of all cryptocurrencies.
Samaa TV also stated that the SBP and the government submitted a report on this matter to the Sindh High Court (SHC).
BREAKING:
The State Bank of Pakistan and the federal government have decided to ban all cryptocurrencies.The SBP has submitted a report to the Sindh High Court, which hears a case about digital currencies.
— Samaa English (@SamaaEnglish) January 12, 2022
In its report, SBP and the government urged the Sindh High Court to not only ban the use of cryptocurrencies, but also to impose penalties against crypto exchanges.
Sima Kamil, Deputy Governor of the Central Bank of Pakistan, said:
“The only use of cryptocurrency in Pakistan is for people to invest in such coins for short-term capital gains.
This can result in the evasion of valuable foreign currency as well as the illegal transfer of funds from the country. With that in mind, the committee should ban cryptocurrencies.”
Although the SBP and the government proposed a general ban on cryptocurrencies in its report, the Sindh High Court has yet to impose a ban on crypto transactions.
The court decided to send the submitted report to the Ministries of Finance and Law, who would review it and determine whether a general crypto ban would be unconstitutional.
Although the ban decision presented by the SBP and the government is advisory at the moment, it remains a matter of curiosity how the court and the ministries will decide on this issue.