SBP’s committee for ban on cryptocurrency

KARACHI: A committee formed under the supervision of Deputy Governor State Bank of Pakistan and other officials to consider any form of corrupt currency in Pakistan has recommended a complete ban on cryptocurrency and other related activities in Pakistan. Of

The committee was formed by the Sindh High Court under the supervision of the SBP Deputy Governor along with officials from the Ministry of Finance, Information Technology, Pakistan Telecommunication Authority and the Security and Exchange Commission of Pakistan to consider whether any issues This type of cryptocurrency should be allowed. Under Pakistani law

Submitting a compliance report to the SHC on a petition against restrictions on the trading of virtual currencies, the committee proposed a complete ban on all cryptocurrency and other related activities in the country. The report said that after careful analysis of the risk-related benefits, it was found that the risks of corrupt currencies far outweighed its benefits for Pakistan. The committee opined that the use of cryptocurrency only in Pakistan seems to be based on speculation where people are being persuaded to invest in such coins for short term capital gains. The committee suggested that such greed could lead to the flight of valuable foreign exchange as well as the transfer of illicit money from the country.