The National Bank of Pakistan (SBP), has reportedly decided to ban the use of all crypto assets in the country. The central bank has also asked the Sindh High Court to issue a ban on cryptocurrencies operating without permission and impose penalties on them.
A high-level committee set up to conduct a study and take recommendations on whether any form of cryptocurrency should be allowed under Pakistani law or not reportedly submitted its report to the Sindh High Court last Wednesday.
The committee was formed by the Sindh High Court under the supervision of the Deputy Governor of Bank Negara Pakistan (SBP) and officials from Pakistan’s Ministry of Finance, Ministry of Information Technology, Telecommunications Authority, and the Securities and Exchange Commission.
The 38 -page report was submitted to the court by Deputy Governor (SBP) Sima Kamil, recommending a complete ban on all crypto assets and related activities in Pakistan.
The committee noted that crypto assets should be declared illegal, stressing that after a scrutinized analysis it found that the risks of crypto assets far outweighed its benefits for the country of Pakistan. The report also warns that crypto assets can be used for money laundering and terrorist financing.
Furthermore, the committee urged the courts to ban all forms of kritpo activities operating without permission especially in crypto exchanges and impose penalties on them as has been done by some countries. The report cites a recent investigation by Pakistan’s Federal Investigation Agency (FIA) into crypto exchanges, including Binance, and the risks it poses to investors.
The Sindh High Court directed the committee to send copies of the report to the Finance Ministry and the Law Ministry to make a final decision on whether any form of crypto assets will be allowed in Pakistan or not. The court also directed the two ministries to recommend whether crypto business in any form can be conducted legally in the country. They will submit a report of their results on April 11.
Petitioner, Waqar Zaka, a television host and crypto entrepreneur, has urged that crypto assets should be declared legal. The court will resume hearing his petition on April 12 next.
