Pakistan Will Never Legalize Crypto Because Of Fraud Concerns

Key Points:

• To avoid unlawful digital currency transactions, Pakistan has decided to block cryptocurrency services accessible on the internet in the nation.
• After being put on the grey list in 2018, the nation was removed in October 2022.
• The central bank of the country also said that crypto is a complete scam that would never be acknowledged.

Aisha Ghaus, Pakistan’s Secretary of State for Finance, said that the Asian nation could not authorize cryptocurrency trading due to its removal from the Financial Action Task Force’s (FATF) “Grey List.”

The minister further said that the State Bank of Pakistan (SBP) and the IT Ministry had begun working on a crypto ban. The Minister also said that the Financial Action Task Force had placed rules and that cryptocurrencies would not be permitted. This would imply that all cryptocurrency-related websites and services would be prohibited.

Although some governments debate cryptocurrency legalization, others continue to tighten down on their usage, and Pakistan is among the countries where Bitcoin and other cryptocurrencies have been contentious from their inception.

Pasha, a major member of the finance team headed by Ishaq Dar, said unequivocally that the government has not formally accepted cryptocurrency as legal cash. The central bank of the nation issued cautions about the hazards of cryptocurrencies and recommended financial institutions not to assist their usage.

The central bank further said that crypto is a complete scam that would never be accepted in Pakistan. Federal Investigation and the Financial Monitoring Unit (FMU) also ruled against Pakistani cryptocurrency investment.

SBP officials, according to local media sources, condemned cryptocurrency as pure fraud that would never be accepted in the nation. They cited anti-crypto efforts by major economies such as the United States, China, and Canada as reasons why the government should follow suit.

Pakistan has experienced a surge in cryptocurrency trading and mining, with thousands of views of relevant social media videos and online exchange transactions.

Mining for cryptocurrencies thrived in Pakistan until April 2018, when the government prohibited trading and mining virtual currencies. Despite the fact that many mining farms have been closed since the ban’s implementation, there is still a growing mining sector.

Most exchanges operate via ghost partners and are never detected by regulators. Nonetheless, the government has been working hard to put a halt to crypto trading.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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